The prospect of Africa’s largest economy becoming cashless has revolutionized the digital payment landscape and moved to deepen the penetration of financial inclusion, as the Central Bank of Nigeria (CBN) backed by major financial players is working to deepen financial inclusion in the country. 106 million adults (18 years and over) are completely financially excluded.
Nigeria’s quest to deepen its financial inclusion lies in digital currency adoption at a recently concluded Blockchain-focused event titled Web3: Architecture the Internet for Tomorrow, said Obi Emetarom, Co-Founder and Managing Director of Appzone, that digital currency adoption remains the most practical and easiest way for the country to deepen its penetration. financial.
The lack of a fully financially included country today is that physical cash based on fiat currency is still very much in circulation Since digital currencies do not have and do not need fiat cash equivalents, an immediate transition to fully digital payments based on cryptocurrency would achieve 100% immediate inclusion %.
However three main issues must be addressed namely regulation, interoperability and ease of use, although in fiat currency trading, the term cash is king may be fading fast There has been a fundamental rise in the adoption of digital currencies by people all over the world, including Nigeria .
digital currency
Will financial inclusion be driven by digital currency adoption
During the COVID-19 pandemic, in particular, the use of cash has diminished dramatically as more people turn to digital alternatives due to security concerns. Moreover, the increase in cross-border and intra-country transactions is making it nearly impossible to trade cash.
A report by PricewaterhouseCoopers (PwC) titled “Mapping a Reason Amid Evolution and Revolution” also states that the volume of cashless transactions will increase by more than 80 percent to 1.9 trillion by 2025 and digital payments per person will triple by 2030.
According to the strategy representative, the Covid-19 pandemic has accelerated the transition from cash to digital payments for three to five years, and Africa is expected to grow by 78 percent by 2025 and by 64 percent by 2030.
Will Digital Currency Challenge Bank of England Operations
This trend is likely to continue even as banking operations become more technologically advanced and thus simplified for end users Transferring funds from one bank to another has become easier with the advent of best-in-class technologies.
