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Friday, October 29, 2021

My reflection on eNaira - ITREALMS

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My Reflection On eNaira

While the pump and pageantry of the launch of eNaira was still going on, questions were popping up from my subconscious mind, which were begging for answers. I wondered through my reflection on eNaira this way:
Sunday Olutayo

eNaira is CBN response to cryptocurrency, but how good is the response?

There are two critical constants that are driving the adoption of cryptocurrency; secrecy and appreciating asset. And eNaira lack both, it is known, that when the required environment variables are missing, the function execution will fail. So, eNaira is not even a close substitute for cryptocurrency.

How will it fare with non-cryptocurrency people?

My banks and fin-techs are reachable and accessible, in most cases, I can walk to their nearest offices, and I can as well call my account officer, all banks assign a staff to all accounts, no matter the balance. To the best of my knowledge, end-users are not welcome in CBN offices, which are only situated in state capitals.

Another point to look at, is transaction volume or turnover; should I need support facility tomorrow, will CBN be there or will my turnover with eNaira be considered by my commercial bank? 

In addition, CBN is government, and I do not think the government has earned our - citizenry - trust. Government at all levels were hiding palliative during covid-19 lock down! 
So, in the absence of unambiguous value adding, will I use eNaira? My answer is NO.

How will eNaira move people from informal to formal sector?

We were taught in school and in life experience, that for our inference to hold water, it has to be empirical. So it is the duty of CBN to let us know how they came about the postulation, that is, how eNaira will achieve this! Until then, it is just an eNaira accolade!

How eNaira will grow GDP?

GDP stands for Gross Domestic Product, meaning, the total value of all the finished goods and services produced within a country in a specific time. So will eNaira grow our GDP, CBN need to educate us on this. Do not just say what it will achieve, tell us, how it will achieve it; so we can buy into it and support it. We are also aware that eNaira is being produced outside Nigeria, despite avalanche of local talents!

Adoption of eNaira?

I do not see critical adoption except by government compulsion, like mandating
her agencies to only collect revenue and make payment in eNaira, thereby replacing the existing "Remita". Apart from this, I am yet to see why anyone will need to use eNaira.

In conclusion:

I regard eNaira as retail banking product. So who is going to regulate CBN now, that it is an actor in retail banking sector to ensure there is level playing field?

*Contributed by Sunday Olutayo, CEO at Sadeeb Technologies



Thanks Mr. Olutayo for bringing this up.

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