What Is a CBDC and Why Nigeria Launched One

A central bank digital currency (CBDC) is official money in digital form, issued by a central bank. Nigeria was one of the first large economies to launch one — the eNaira — so it is worth understanding what a CBDC is, and why a country issues one.

Why launch one

• Cheaper payments — cutting the cost of moving money.
• Financial inclusion — reaching people without bank accounts.
• Transparency — traceable flows, harder to use for fraud.

The promise and the criticism

Supporters see lower costs and inclusion; critics raise privacy and adoption concerns, and uptake has been slow. Either way, a CBDC is naira, so it does not change the exchange rate — for hard-currency needs the dollar routes still apply. See eNaira vs crypto.