reply on: Central banks in emerging economies look to CBDCs for payment efficiency, BIS report says

28 sats \ 4 replies \ @TheBTCManual 15 Apr 2022 \ on: Central banks in emerging economies look to CBDCs for payment efficiency, BIS report says | The Block bitcoin

I saw nigeria are pushing theri CBDC the eNaira - https://businessday.ng/opinion/article/can-the-enaira-increase-nigerias-gdp-by-29bn-over-the-next-10-years/

Will be watching this one closely and i'm pretty sure its going to be a big failure, or at least I hope so given that everything the nigerian government set up isn't very robust

As for report, I can't see South Africa's CBDC working, we heavily cash reliant, people love cash here, if not cash vouchers and locally priced substitutes like trading airtime, and data.

Hopefully bitcoin gobbles up that market

20 sats \ 2 replies \ @zuspotirko 15 Apr 2022

Will be watching this one closely and i'm pretty sure its going to be a big failure, or at least I hope so given that everything the nigerian government set up isn't very robust

Can you elaborate on this? What do you expect to happen with this?

22 sats \ 1 reply \ @TheBTCManual 15 Apr 2022

Nigeria like my own country is rife with corruption, pretty sure having currency without the filter of the primary dealer banks, means they can easily funnel capital to all sorts of places with little to no oversight

While Africans we don't trust our governments, and cash is still a big part of the economy, African countries are one of the few places in the world where physical cash supplies continue to grow. To have a successful CBDC you have to eliminate cash

In addition, we have massive black markets for cash and forex, our tax base is small because of it, Africans remain unbanked, and many of us don't even have the identification to bother opening up banking, and trying to funnel people out of that behaviour and network effect for a system like a CBDC is going to be a tough sell

Nigeria is also not a unified country, it's made up of different provinces who even then are divided by 100s of tribes who all have different interests and don't agree on jack. The central government doesn't have the ability to enforce a CBDC short of certain metro areas like Abuja and Lagos.

7 sats \ 0 replies \ @KenyaCoin 16 Apr 2022

There's certainly coordinated efforts occurring, not just with CBDCs but with re-doing KYC / Identity verification on mobile network communications.

Why are African governments blocking phone lines of citizens? https://www.aljazeera.com/features/2022/4/8/why-are-african-governments-are-blocking-phone-lines-of-citizens

Nigeria ties all SIM cards to national ID system https://reclaimthenet.org/nigeria-ties-all-sim-cards-to-national-id-system/

It would make sense this is occurring to emulate China's social credit system, if not China being the coordinator.

5 sats \ 0 replies \ @KenyaCoin 16 Apr 2022

Looks like CBN (Nigeria) was not one of the 26 central banks that participated.

Annex 1: Central banks participating in the survey Twenty-six central banks participated in the 2022 EME Deputy Governors survey from the following jurisdictions:

https://www.bis.org/publ/bppdf/bispap123_a_rh.pdf

And this with the eNaira ranking #1 for "most developed" (retail) CBDC:

The race to digital money is on – PwC’s 2022 CBDC Global Index shows which central banks are in the lead #20320 https://www.pwc.com/gx/en/news-room/press-releases/2022/pwc-cbdc-global-index-2022.html