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IMF Warns As eNaira Transactions Hit N1.4m
Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has cautioned about what he called “unforeseeable consequences” that could be brought about by the retail central bank digital currencies.
She expressed her concern about retail CBDCs in a May 1 interview at the Milken Institute’s 2023 Global Conference.
According to the IMF boss, the IMF considers retail CBDCs to have far more room for error than wholesale CBDCs.
“We think that wholesale CBDCs can be put in place with fairly little space for undesirable surprises, whereas retail CBDCs completely transform the financial system in a way that we don’t quite know what consequences it could bring”, she said.
According to a report by Cointelegraph, retail CBDCs are state-backed virtual currencies issued by central banks for use by consumers and businesses while wholesale CBDCs are similarly central bank-issued but are designed to allow financial institutions to carry reserve deposits with a central bank.
The IMF MD noted that the organization was collaborating with about 50 countries to ensure best practices are adopted, which she expects to have a huge influence on banks and economies in the future.
Earlier, the IMF had announced that it would publish a CBDC handbook to help central banks with CBDC design and implementation, a decision resulting from the unprecedented levels of interest from nations around the world.
The eNaira introduction on October 25, 2021, made Nigeria one of the first countries in the world to develop a central bank digital currency, that is available to the public.
Africa’s most populous nation joined the Bahamas and the Central Bank of the Eastern Caribbean on the coveted list.
During the launch, the Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, stated that the eNaira was presented after four years of research by the apex bank. The CBN defines the eNaira as a digital currency denominated in naira that serves as a medium of exchange and a store of value.
The CBN Governor claimed that 33 banks were successfully integrated into the eNaira network, with the apex bank minting N500m for the currency’s inauguration.
The regulator said N200m had been issued to financial institutions and over 2,000 customers had also been on-boarded as of the time of the launch.
The CBDC speed wallet app and merchant wallet were made available for download once eNaira became operational.
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.