Factors Hindering CBN in the effective adoption of eNaira Payment System in Nigeria
People’s lives, viewpoints, and societal events have all been affected by the expansion of ICT. One of the most significant achievements in society’s ability to recover is the availability of a large amount of data (Fathian et al., 2009). Information technology (IT) advancements have made formerly closed cultures more open to new ideas and techniques. All new and long-term jobs and initiatives require information technology. This has resulted in a slew of international digital currency efforts (Afsharpour et al., 2013).
Modern technology and the global network in general are increasingly used in the digital economy, online shopping and finance, and electronic banking (Taghizadeh and Shafigh 2013). E-commerce is a goal for all countries.
Pantea and colleagues (2018) looked at the dynamic and sensory effects of smart technologies on customers. Because customers are increasingly reliant on intelligent technology, practitioners can more easily discern the impact of this technology on consumer purchase decisions.
As a result, digital money transactions are critical to corporate growth. As a result, digital currency is required for the proper execution of monetary policy via monetary transactions, as well as their impact on global economic and financial activity.
Technological innovation has always had an impact on the development of global monetary and payment systems. Financial technology, according to Arner, Barberis, and Buckley, has changed the way we think about money in new ways (2016). Despite the fact that virtual currency had existed previously, the introduction of enairia in 2021 marked a paradigm shift for the concept of “virtual currency” by introducing an electronic form of cash based on the blockchain protocol, a peer-to-peer distributed ledger technology (DLT) that securely records transactions across mobile devices and computers.
The enaira is a fiat currency issued by the Nigerian central bank, according to Section 19 of the CBN Act (CBN). It is legal tender in Nigeria and forms part of the national currency (2021). (2021) According to Seun Timi-Koleolu and Eustace Aroh, eNaira is a digital currency that the Nigerian government would produce with the same value as fiat naira (i.e. physical naira notes). The general people can purchase it through FI and have the funds placed into their digital wallets. The digital renminbi in China and the e-krona in Sweden are examples of this currency. eNaira is real money that users earn and store in their e-wallets rather than bank accounts, as opposed to digital banking. Individuals can use it directly, just like they can with digital banking, because it is fiat currency. Transaction costs and timeframes are expected to reduce as a result of eliminating intermediaries. Furthermore, international transactions are expected to become less complicated. Nigerians who do not have personal bank accounts can now use eNaira to conduct transactions.