Nigeria is attempting to cajole its population into using digital payments as opposed to cash, according to multiple reports. One method of encouragement is limiting ATM withdrawals to just $45, making it difficult to use physical money. Of course, some point to this harsh policy as a warning that central bank digital currencies (CBDCs) could be a path to more government control of how you spend your money. All so Orwellian.
According to Bloomberg, the Nigerian government is attempting to expand access to finance, and digital banking as about 40 million adults do not have a bank account. A document signed by Haruna Mustafa, the Director of Banking Supervision at the Central Bank of Nigeria, outlines the restrictions implemented this week. While larger transactions are available, the Bank has instituted sufficient hurdles to stem these withdrawals.
An article in ZeroHedge from last month outlines Nigeria’s attempt to introduce a CBDC or eNaira, described as a “big CBDC flop.” The report noted that only 1 in 200 Nigerians use the eNaira while Bitcoin adoption ranks number 11 worldwide. This appears to indicate that Nigerians are not so enthusiastic about a government-controlled digital currency that potentially allows officials to monitor and control all payments and transfers.
The US is also a country that has been researching the possibilities and potential risk of a digital dollar. While the jury is still out, opponents have raised privacy concerns about a dollar-based CBDC. Some believe that a regulated, privately issued digital dollar is a better path that will keep government intrusion at an arms length. At least that is what most people hope.