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Nigerian Central Bank Upgrades eNaira For Contactless Payments With NFC

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According to reports, the central bank stressed how important NFC technology will be in increasing CBDC adoption rates.

The Central Bank of Nigeria (CBN) has shown no signs of abandoning its central bank digital currency (CBDC) program despite the former governor’s removal about two months ago.

The CBDC smartphone app has recently been improved by the central bank by integrating Near Field Communication (NFC) technology, claims local news source The Sun. This improvement makes it possible for mobile devices and payment terminals to communicate while they are close to one another, making contactless and practical eNaira payments possible.

Even though earlier iterations included QR codes, the CBN reportedly emphasized that the most recent addition of NFC technology will play a significant role in increasing the acceptance rates for the CBDC. According to reports, the CBN is committed to using cutting-edge technology to improve customer experience, according to Joseph Angaye, the deputy director of the CBN’s risk management division.

Angaye reportedly stated that the CBDC would include programmability features, embracing the idea of leveraging cutting-edge technology. He noted that by limiting CBDC payments to specific government programs only, these programmability features could lower the danger of fraud.

According to reports, Angaye went on to underline that the programmability of the CBDC enables targeted financial allocation to farmers, enabling certain goals like the purchase of tools. This strategy ensures that the intended usage is strictly followed by making the money put into their eNaira wallet non-divertible for any unrelated uses.

CBDCs reduce settlement risks and speed up transaction processing for retail users, according to Angaye. He stressed that the eNaira intends to address financial inclusion, and Nigeria’s pioneering adoption of CBDCs gives useful lessons for various economic players and entities to learn from.

Nigeria introduced the eNaira in 2021 to join a select group of nations having a CBDC program. However, adoption rates have fallen short of forecasts, leading the central bank to consider a number of usage-boosting approaches.

While integrating USSD capabilities into the service, the central bank released use cases in the transportation sectors. Former CBN Governor Godwin Emefiele attributed poor adoption rates to commercial banks’ suppression of eNaira’s expansion in favor of their own profitability.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a crypto blog writer, he is sharing his knowledge of the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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