Redesigning the eNaira Central Bank Digital Currency (CBDC) for Payments and Macroeconomic Effectiveness

Abstract

Purpose: Central bank digital currency (CBDC) is non-physical or the digital equivalent of physical money issued by a central bank. Nigeria became the first African country to issue a CBDC, popularly known as the eNaira. This chapter highlights the redesign features that eNaira should possess to offer payment solutions and macroeconomic stability effectively.

Methodology: The chapter used discourse analysis to highlight the features the eNaira should possess.

Findings: The chapter suggests that the eNaira should have an interest-bearing status, have enhanced security features, and offer zero transaction costs on eNaira transactions. These are design features which the eNaira presently lacks.

Originality: This chapter is the first to suggest redesign features for an already issued CBDC. It is also the first to highlight the design features of a CBDC in the African continent.

Citation

Ozili, P.K. (2023), "Redesigning the eNaira Central Bank Digital Currency (CBDC) for Payments and Macroeconomic Effectiveness", Tyagi, P., Grima, S., Sood, K., Balamurugan, B., Özen, E. and Eleftherios, T. (Ed.) Smart Analytics, Artificial Intelligence and Sustainable Performance Management in a Global Digitalised Economy (Contemporary Studies in Economic and Financial Analysis, Vol. 110B), Emerald Publishing Limited, Leeds, pp. 189-197. https://doi.org/10.1108/S1569-37592023000110B012