Nigeria is witnessing an increased Central Bank Digital Currency [CBDC] adoption nearly 18 months after launching as national fiat reserves face shortage.

The central bank’s decision to replace older notes with larger denominations amid inflation has caused Nigeria’s cash crunch. While developing countries were among the first to recognize the value of a CBDC, the concept is yet to be put into practice in most parts.

The local political climate and other macro-economic conditions are also responsible for the current cash crisis. The naira redesign has certainly made worse the current economic hardship and spiked pressure on the unbanked.

Nigerians have been faced with record-high inflation of 21%, as well as a shortage of the newly redesigned naira.

(By Suzuki Shillsalot)