Digital security and financial technology expert, Dr. Kingsley Chibuzor Aguoru, has raised concerns about approving cryptocurrencies as a national digital payment system, citing their potential to breach Nigeria’s financial regulations. Instead, he praised the Central Bank of Nigeria (CBN) for prioritizing the eNaira, describing it as a safer and more reliable alternative.
Dr. Aguoru, a leading developer of the 3WiDentity authentication system, argued that cryptocurrencies like Bitcoin, which operate as unregulated and decentralized assets, pose significant risks. “Approving cryptocurrency for national use would conflict with Nigeria’s existing financial regulations,” he stated.
Highlighting the benefits of the eNaira, Aguoru emphasized that the Central Bank Digital Currency (CBDC) aligns with regulatory standards, offering Nigerians a stable and secure means of digital transactions. “The eNaira’s value is pegged to the naira, providing stability and ensuring compliance with financial frameworks,” he explained.
He also pointed out that cryptocurrencies are not backed by government authorities or regulatory systems, making them inherently volatile and risky. “Unlike traditional currencies such as the eNaira, cryptocurrencies exhibit high volatility and unpredictable value swings. For example, Bitcoin and similar assets have shown significant price fluctuations, limiting their effectiveness as a reliable store of value,” he noted.
As a UK-chartered engineer and FEANI-certified European engineer, Dr. Aguoru outlined key challenges preventing cryptocurrencies from functioning as standard currencies.
“For a currency to be effective, it must serve as a store of value, a unit of account, and a medium of exchange. Cryptocurrencies struggle to meet these criteria due to their instability and inconsistent pricing metrics,” he concluded.
Aguoru’s comments come amid ongoing debates on the future of digital payments in Nigeria, with the CBN’s eNaira initiative taking center stage as a regulated and forward-thinking solution.
