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Redesigning the eNaira central bank digital currency (CBDC) for payments and macroeconomic effectiveness

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  • Ozili, Peterson K

Abstract

Central bank digital currency is non-physical money or the digital equivalent of physical money issued by a central bank. Nigeria is the first African country to issue a central bank digital currency, popularly known as the eNaira. This paper highlights the redesign features which the eNaira should possess for it to become very effective in offering payment solution and for macroeconomic stability. The eNaira should have an interest-bearing status, have enhanced security features and should offer zero transaction cost on eNaira transactions.

Suggested Citation

  • Ozili, Peterson K, 2023. "Redesigning the eNaira central bank digital currency (CBDC) for payments and macroeconomic effectiveness," MPRA Paper 118807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118807
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    References listed on IDEAS

    as
    1. Ahnert, Toni & Assenmacher, Katrin & Hoffmann, Peter & Leonello, Agnese & Monnet, Cyril & Porcellacchia, Davide, 2022. "The economics of central bank digital currency," Working Paper Series 2713, European Central Bank.
    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.
    Full references (including those not matched with items on IDEAS)

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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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