Nigeria’s central bank says it is cutting transaction fees for its e-naira platform by 50% – a move the bank says will increase transaction volumes on its central bank digital currency (CBDC) platform. The central bank believes that the wider adoption of CBDC will boost Nigeria’s cross-border trade volume.
Increasing e-commerce transaction volumes
Another move aimed at increasing adoption and adoption of the e-Naira Central Bank Digital Currency (CBDC) has revealed that the Central Bank of Nigeria will reduce service fees incurred by individuals and merchants using the digital currency platform. by 50%
In addition, Nigerian businesses that sign up to become e-Naira merchants have the potential to increase their e-commerce transaction volume by 50%, according to a report.
A Daily Trust report, citing the Deputy Governor of the Central Bank, Kingsley Obera, said that Nigeria’s business adoption of the CBCC could improve cash management and increase the country’s cross-border trade volume. Obiora said:
Also, the implementation of phase 3 of the e-Naira project for cross-border transactions is expected to increase cross-border trade by about 30%. It is also expected that the lower transaction fee will increase the use of eNair (transaction volume and value) and improve the revenue stream of businesses.
Deep financial inclusion
Obiora, who was reported to have spoken at a business onboarding event, days after CBN Governor Godwin Emefiele disclosed that CBDC has less than 1 million users. However, as reported by Bitcoin.com News, CBN is now targeting to increase the number of e-Naira users tenfold.
In order to achieve this, the central bank will add a feature that will allow users without bank accounts and smartphones to access CBCC. The CBN has since unveiled the Unstructured Supplementary Service Data (USSD) code, which it says will strengthen financial inclusion.
Register your email here to get Africa News Weekly delivered to your inbox:
What do you think about this story? Let us know what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.