The International Monetary Fund (IMF) said that the CBDC is exposed to cyber security risks, unforeseen legal issues and financial integrity risks.
“There are cyber security risks associated with the eNaira. Unforeseen legal issues, including for private law aspects of its operations (e.g., the exact nature of legal relationship between the wallet providers and CBDC holders), may subject eNaira to litigation and operational risks,” it added.
The top financial institution emphasised the need for attentiveness to the different risks, urging the CBN to fix existing deficiencies in anti-money laundering laws and combat terrorism financing.
The IMF said, ”While preventive measures and the planned AML/CFT regulations for eNaira intermediaries are welcome, a money laundering/terrorist financing risk assessment of domestic and cross-border uses of eNaira and the adoption and implementation of the regulation along with putting in place risk-sensitive mitigation measures should be a priority,”
The Fund encouraged Nigeria to step up its anti-corruption/ governance efforts.
The IMF welcomed the gradual rollout of the CBDC and its benefits but highlighted the need for vigilance to various risks, including monetary policy implementation, bank funding, cyber security, operational resilience, and financial integrity and stability, through regular risk assessment and contingency planning.
Nigeria is one of the five countries in the world to develop an official digital currency. President Muhammadu Buhari and the governor of Central Bank of Nigeria, Godwin Emefiele launched the eNaira in Abuja on Monday, October 25, 2021. The Central Bank of Nigeria (CBN) engaged a Barbados-based digital financial technology firm, Bitt Inc, as a technical partner to develop the e-Naira.
At the launch of the enaira Emefiele, said 500 million eNaira ($1.21 million) has already been minted.