[dayve]

By introducing a CBDC, the Nigerian government hopes to attract revenues that come from remittances, which have mostly shifted to crypto channels because of poor international trade policies. Today, getting USD liquidity as an importer/exporter is challenging, as there are two market rates - one for banks & few institutions, the other for individuals & the vast majority of the economy. To find competitive rates, people resort to P2P markets. Furthermore, the Nigerian government banned licensed money operators from transacting with any crypto entity - essentially shutting down revenues from fiat deposits. Restrictions like withdrawal limits on USD accounts ($10k per month) makes it highly unfavorable for such high-volume merchants to transact in USD via the banking system. A CBDC is a way of the Nigerian government looking at all that activity with the hopes to attract the revenues that flow within crypto, but they miss the fundamental step of favorable trade & monetary policies that increase USD liquidity and opens up crypto officially to capture remittance revenues.

P.S: I’m a Nigerian living in Nigeria

[reacharavindh]

Not discounting the value of the other facts you shared, but how does digital currency change the status quo if the problem preventing remittances through official channels?

Isn’t it yet another official channel that lacks the same international trade connections just like regular bank accounts?