In a bid to boost the adoption of its Central Bank Digital Currency (CBDC), eNaira, the Nigerian central bank has made significant enhancements to its mobile app.
According to a report by The Sun, the latest update includes Near Field Communication (NFC) technology, allowing mobile devices and payment terminals to interact when nearby. This enables convenient and contactless eNaira payments, replacing the previously used QR codes.
Joseph Angaye, the deputy director of the CBN’s risk management department, emphasized the regulator’s commitment to enhancing user experience through innovative technology. The addition of NFC technology is expected to play a crucial role in increasing the usage of eNaira among the Nigerian population.
The new version of the CBDC app also incorporates programmability features, which Angaye explained can be used to limit CBDC payments exclusively to designated government programs.
This measure aims to reduce the risk of fraud and ensure that funds are allocated to their intended purposes. For example, funds can be specifically directed to farmers for tool acquisition, ensuring the money is not diverted for unrelated uses.
Angaye highlighted several advantages of CBDCs for retail users in Nigeria, including mitigating settlement risks and enabling rapid transaction processing.
The eNaira initiative aims to address financial inclusion issues in the country. Nigeria’s pioneering role in adopting CBDCs provides valuable insights for other economic players and entities to learn from.
Also Read: Bank of Korea’s Charts CBDC for Future Payment Systems
Since its launch in 2021, eNaira adoption rates have fallen below expectations. To drive usage, the central bank has introduced use cases in the transport sector and included USSD functionality in the offering.
