Connect with us

Business

eNaira better than bitcoin, ethereum, others, IMF tells Nigerians

Published

on

The International Monetary Fund (IMF) has declared central bank digital currencies (CBDCs) like eNaira are a better bet than cryptocurrencies.

In a new statement, IMF managing director, Kristalina Georgieva said countries were exploring CBDCs and that it would soon become a mainstay.

She said, “In order to become familiar with the bits and bytes of digital money, central banks are getting to work.

“We don’t yet know how far and how fast CBDCs will go, since they are still in their infancy. As a result, central banks are building up their ability to harness new technologies – so that they will be ready for whatever lies ahead.”

There are about 100 or so countries that are exploring CBDCs with support from the IMF.

“In contrast to private digital currencies, CBDCs can potentially offer greater resilience, more safety, greater availability, and lower costs when designed prudently.

“Crypto assets, which are inherently volatile, are not backed by any government. It is possible that even the best-managed and regulated stablecoins cannot compete with a well-designed and stable central bank digital currency,” she said.

Read also: Charges, problems, two other takeaways from CBN’s eNaira update

According to her, global central banks are committed to minimizing the detrimental effects of CBDCs on financial intermediation and credit provision. In order for the economy to function properly, this is imperative.

“The CBDCs we studied are not interest-bearing, which makes them useful, but not as attractive as traditional bank deposits as a vehicle for savings,” she added.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations