Nigerians’ Rejection of Their CBDC Is a Cautionary Tale for Other Countries

Nigerians’ Rejection of Their CBDC Is a Cautionary Tale for Other Countries 👉 Get Your Binance Account from here https://bit.ly/Binance-New-Account Nigerians’ Rejection of Their CBDC Is a Cautionary Tale for Other Countries. Nigerians are protesting the African country's digital currency and demanding renewed access to paper money, despite government incentives. In Nigeria, citizens have taken to the streets to protest the nation’s cash shortage, further objecting to their government’s implementation of a central bank digital currency (CBDC). The shortage came about due to cash restrictions aimed at pushing the country into a 100% cashless economy. Yet, instead of adopting the CBDC, Nigerian protesters are demanding paper money be restored. The country’s experience strongly suggests the average citizen understands that CBDCs present a substantial risk to financial freedom while providing no unique benefit. Nicholas Anthony is a policy analyst in the Cato Institute’s Center for Monetary and Financial Alternatives. It is no secret that CBDCs have been growing in popularity among central bankers, policy makers, and consultancy firms in recent years. Yet, for citizens it’s been another story. When the U.S. Federal Reserve solicited comments on CBDCs, more than two-thirds of the commenters were concerned about the risks to financial privacy, financial freedom and the stability of the banking system. Further, CBDCs really don’t add anything novel to the market in terms of benefits for consumers. To the extent people want it, many currencies are available in digital forms through debit cards, payment apps and even prepaid cards. That much should be clear from the abysmal adoption rate in Nigeria, where less than 0.5 % of Nigerians have used the CBDC. To put that number into perspective, more than 50% of Nigerians have used cryptocurrency. CBDC adoption incentives in Nigeria have failed. The Nigerian government has unleashed a flurry of tricks to spur adoption but none has proven effective. To its credit, the Nigerian government initially tried to encourage use through modest measures. In August 2022, it removed access restrictions so that bank accounts were no longer required to use the CBDC. Then, in October, it offered discounts if people used the CBDC to pay for cabs. Yet, neither effort proved to be fruitful. Put simply, Nigerians prefer cash. Unfortunately, the Nigerian government doubled down and moved to more drastic measures by restricting cash itself. In December the Central Bank of Nigeria began restricting cash withdrawals to 100,000 naira (US$225) per week for individuals and 500,000 naira ($1,123) for businesses. To make matters worse, the Nigerian government also chose to redesign the currency during this time in a “move aimed at restoring the control of the Central Bank of Nigeria (CBN) over currency in circulation” and to “further deepen the push to [a] cashless economy,” according to a CBN press release. So not only are citizens limited in how much they may withdraw, but the commercial banks also don’t have the cash to give out because many are still waiting for the newly designed cash to arrive. With these restrictions in place, the Nigerian government managed to drain the economy of cash and set the stage for the CBDC to finally have its moment in the spotlight. ‘You can’t legislate a change in behavior’. And yet, it didn’t work. Stories of Nigerians struggling with the cash restrictions quickly spread across Twitter posts, TikTok videos and other social media. Rather than turn to the CBDC, Nigerians took to the streets to protest the restrictions and... https://www.coindesk.com/consensus-ma... #crypto #bitcoin #ethereum #cryptocurrency #news #blockchain #litecoin #cryptonews #cryptonewstoday #cryptoworld #cryptoworlddaily #opinion #opinionnews #opinionnewstoday #cbdcs #cbdcsnews #cbdcsnewstoday #nigeria #nigerianews #crypto ***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT! USE ALTCOIN DAILY AS A STARTING OFF POINT! This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research. bitcoin, blockchain, crypto, cryptocurrency, altcoin, investment, ethereum, bitcoin crash, xrp, cardano, ripple