Prof. Lauren Cohen, L. E Simmons, a Professor of Business Administration, Harvard Business School, United States of America has suggested recommendations for the success of Nigeria’s Central Bank Digital Currency (CBDC).
He gave some useful advice to the apex bank at a symposium organised by the LCCI Financial Services Group that was held both physical and virtual.
Themed “Blockchain Technology, Cryptocurrencies and Central Bank Digital Currencies: Implications for the Global Financial Landscape”, Cohen tasked the Central Bank of Nigeria (CBN) to pitch the unique value of the digital currency to ensure its dominance over other decentralized financing system to engender its success.
He said that the goals, factors to engender success, achievable internal landmarks and when to declare victory of the CBDC needed to be considered and set in place.
The Don listed the positive economic implications of the CBDC to be easier, cheaper and more fluid, more efficient and effective transactions, better enforcement and monitoring of contract and tax payments and greater financial inclusion.
He, however, noted that the matter of privacy was a big knock on the CBDC that needed to be dealt with.
“For it to be successful, a network group must be created to increase the breadth and depth of adoption to make it more valuable.
“The CBN must be lauded for rolling out the CBDC in the way they did but more needs to be done to ensure it robustly takes over the decentralized finance system.
“It is the beginning of how fintech should be embraced to create value as an engine that fuels the dynamic landscape to look for path-breaking fintech innovations that are yet to come.
“However, the landmarks must be time, adoption, motor and inclusion sensitive, with definite timelines,” he said.
Chief Sparkler, Sparkle Nigeria, Uzoma Dozie, said that the CBDC would increase digital liquidity, and help the government pay social funds directly to beneficiaries.
“However, there’s need to scale up infrastructure such as mobile devices, data availability to drive e-currency adoption across the country,” he said.