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Redesigning the eNaira Central Bank Digital Currency (CBDC) for Payments and Macroeconomic Effectiveness

In: Smart Analytics, Artificial Intelligence and Sustainable Performance Management in a Global Digitalised Economy

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  • Peterson K. Ozili

Abstract

Purpose:Central bank digital currency (CBDC) is non-physical or the digital equivalent of physical money issued by a central bank. Nigeria became the first African country to issue a CBDC, popularly known as the eNaira. This chapter highlights the redesign features that eNaira should possess to offer payment solutions and macroeconomic stability effectively. Methodology:The chapter used discourse analysis to highlight the features the eNaira should possess. Findings:The chapter suggests that the eNaira should have an interest-bearing status, have enhanced security features, and offer zero transaction costs on eNaira transactions. These are design features which the eNaira presently lacks. Originality:This chapter is the first to suggest redesign features for an already issued CBDC. It is also the first to highlight the design features of a CBDC in the African continent.

Suggested Citation

  • Peterson K. Ozili, 2023. "Redesigning the eNaira Central Bank Digital Currency (CBDC) for Payments and Macroeconomic Effectiveness," Contemporary Studies in Economic and Financial Analysis, in: Smart Analytics, Artificial Intelligence and Sustainable Performance Management in a Global Digitalised Economy, volume 110, pages 189-197, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:csefzz:s1569-37592023000110b012
    DOI: 10.1108/S1569-37592023000110B012
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    References listed on IDEAS

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    1. Toni Ahner & Katrin Assenmacher & Peter Hoffmann & Agnese Leonello & Cyril Monnet & Davide Porcellacchia, 2024. "The Economics of Central Bank Digital Currency," International Journal of Central Banking, International Journal of Central Banking, vol. 20(4), pages 221-274, October.
    2. Le, Anh H., 2022. "Central bank digital currency and cryptocurrency in emerging markets," MPRA Paper 114734, University Library of Munich, Germany.
    3. Walter Engert & Ben Fung, 2017. "Central Bank Digital Currency: Motivations and Implications," Discussion Papers 17-16, Bank of Canada.
    4. Mohammad Davoodalhosseini & Francisco Rivadeneyra & Yu Zhu, 2020. "CBDC and Monetary Policy," Staff Analytical Notes 2020-4, Bank of Canada.
    5. David Kuo Chuen Lee & Li Yan & Yu Wang, 2021. "A global perspective on central bank digital currency," China Economic Journal, Taylor & Francis Journals, vol. 14(1), pages 52-66, January.
    6. Adalid, Ramón & Álvarez-Blázquez, Álvaro & Assenmacher, Katrin & Burlon, Lorenzo & Dimou, Maria & López-Quiles, Carolina & Martín Fuentes, Natalia & Meller, Barbara & Muñoz, Manuel A. & Radulova, Pety, 2022. "Central bank digital currency and bank intermediation," Occasional Paper Series 293, European Central Bank.
    7. Mr. Tanai Khiaonarong & David Humphrey, 2022. "Falling Use of Cash and Demand for Retail Central Bank Digital Currency," IMF Working Papers 2022/027, International Monetary Fund.
    8. Ohik Kwon & Seungduck Lee & Jaevin Park, 2022. "Central bank digital currency, tax evasion, and inflation tax," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1497-1519, October.
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    More about this item

    Keywords

    eNaira; central bank digital currency; Nigeria; interest-bearing CBDC; cryptocurrency; blockchain; payment system;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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