After a year of unsuccessfully enforcing the CBDC, authorities are restricting citizens from withdrawing money

After a year of unsuccessfully enforcing the CBDC, authorities are restricting citizens from withdrawing money

In Nigeria, CBDC was launched exactly one year ago, but it was never widely adopted. The government tried to lure people with utility bill rebates and rickshaw fares, but that didn’t work either.

In return, Nigerians have become more dependent on cryptocurrencies and peer-to-peer trading platforms such as crypto exchanges because they provide “an opportunity for expanded access to financial services”. In fact, from the moment the government CBDC was imposed on Nigerians, the USDT became the country’s national currency, which was not part of the government’s plans.

But the Central Bank of Nigeria did not give up and announced that it intends to increase the use of digital e-naira by 8 times by the end of the year through the implementation of various initiatives that include additional features of Unstructured Supplementary Service Data (USSD) in the wallet app. However, the citizens did not even understand what it was. But the plan must be followed. And here is the expected result.

Starting this week, Nigeria officially limits cash withdrawals from ATMs to $45 per day. And all this to force citizens to use the government’s digital e-naira. Total withdrawal volume cannot exceed $300 per week.

Let me remind you that in March, CBDC pilots will appear simultaneously in the United States, the European Union, Russia and other countries. Judging by the experience of the most populous country in Africa, with a population of 211 million people, such restrictions are guaranteed to appear in all OECD countries in the spring. It should be assumed that this will be a good incentive to develop alternative ways of storing funds and making payments, for example, using the same USDT.

Naturally, bankers may not like the global adoption of cryptocurrencies, and then state-level bans on offline wallets and other crackdowns will be involved. Moreover, the outcome of such a struggle is far from clear. It is not certain that imposed CBDCs will win this war. But it’s worth starting to get rid of large sums of money now.

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