Shonubi who gave the advice virtually at the Chartered Institute of Bankers of Nigeria (CIBN) Advocacy Dialogue, Series 4, yesterday in Lagos, noted that most nations of the world are embracing the opportunities that Central Bank Digital Currency (CBDC) presents for financial inclusion across the globe.
At the event which had its theme as, “Central Bank Digital Currencies: Insights for the 21st Century Banker,” Shonubi said “I am of the opinion that CBDC will strengthen the stability of the banking system even as deposit becomes more diversified when more people are banked.
“Though Nigeria has blazed the trail in instant payments, we rank top when it comes to instant payments, the CBDC generally will improve efficiency and promote opportunities for jurisdictions without instant payments options to leapfrog on their operations of faster payment mode.
“We have so many countries today that have not implemented instant payments like we have done in Nigeria.
“More retail payments may assume real time features, thereby requiring banks to strengthen their operational capacity to effectively harness the opportunity,” he said.
Represented by Mr Musa Jimoh, Director Payment System Managemen at the CBN, the deputy governor said that CBDC might enhance liquidity of banks in developing nations, through international remittances.
He said that diaspora population of developing nations was on the increase and remittances likewise, even as the world economy rebounds in the post-pandemic era.
According to him, the CBDC is expected to enhance efficiency in international remittances and challenge the current high cost of remittances. He said that the expectation of the CBDC was to see how the cost of remittances could be brought down so that more people begin to remit money home.
Meanwhile the Nigerian Stock Exchange extended its losing streak to four consecutive trading sessions on Thursday with the All-Share Index contracting further by 0.01 per cent on sustained sell-offs of banking stocks.
The performance was buoyed by investors’ profit-taking sentiments in all the major sectors except oil & gas stocks.