The Central Bank of Nigeria published a white paper that provides detail on the critical dimensions of its eNaira central bank digital currency (CBDC). It provided more detail on the individual wallet tiers and limits (Table 2 and 3 below) and the two-tier, apparently “hybrid”, architecture (Figure 7). The local press is reporting that the launch of the pilot is imminent. [Read more]
According to a new paper by the Federal Reserve, the US dollar’s dominant role in global markets should continue, but that status could be threatened by increased European integration, the continued rapid growth of China, or cryptocurrencies. However, absent any large-scale political or economic changes, it concludes that the dollar will likely remain the world’s dominant international currency for the foreseeable future. For example, even with more European fiscal integration, remaining political separation will continue to cause policy uncertainty that would undermine the Euro as a viable competitor. And there are significant roadblocks to more widespread use of the Chinese renminbi, including it not being freely exchangeable, the Chinese capital account being closed, low investor confidence in Chinese institutions and the rule of law. As for cryptocurrencies, the paper’s assessment is that it is unlikely that technology alone could alter the landscape enough to completely offset the long-standing fundamental reasons the dollar has been dominant. [Read more]
The Capgemini World Payments Report 2021 found that, thanks to COVID-19 and the growing digital appetite of customers, demand for digital payment options is greater than ever before, along with the expectations for fast transaction settlements, instant payments, e-money, failsafe security, and wow-factor customer experience. The report found that nearly 45% of consumers frequently use mobile wallets to make payments (>20 transactions a year) up from 23% in the 2020 poll. Furthering this trend, global B2B non-cash transactions will increase to reach nearly 200 billion transactions by 2025, from 121.5 billion in 2020. [Read more]
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