CBDC shortcomings in Africa as highlighted by eNaira
The concept of a digital fiat currency was the ultimate merger between the traditional and new financial systems. Innovators and developers deemed this concept the next big thing to usher in the 4th Industrial revolution. Unfortunately, this concept received a different enthusiasm than people initially intended. By looking at the first African CBDC, the eNaira, its low adoption rate is a perfect example of why Africa’s web3 environment sim cannot handle the implications of CBDCs. However, the lucrative cryptocurrency venture has some governments pushing for its adoption. Unfortunately, this is merely a ploy to regain control before the revolutionary concept of digital currency comes and replaces fiat currency. Below are the highlights of the various disadvantages of CBDC to the ordinary African individual.
government’s direct control over it generally ensures that it can quickly execute laws and taxes directly from the user’s eNaira account.