To study inclusion issues related to retail central bank digital currency (CBDC) design, the
Massachusetts Institute of Technology (MIT) Digital Currency Initiative (DCI) and affiliated organizations gathered a significant team of researchers in four low- and middle-income countries, including India, Indonesia, Nigeria, and Mexico. On January 13, they made public the findings of their fifteen-month study.
Here are
key take aways from the research. My comments are in red.
- Self-Custody: CBDC designers should consider how to preserve the benefits of self-custody by considering a wider range of custody designs opened up by new possibilities with digital currency technology.
This is a valid point. Although, I think that having a non-custodial wallet for the eNaira wouldn't do any help. The naira is a weak currency and it's not like anyone is expecting it to appreciate anytime soon. - Offline-Capabilities: Making payments digitally on most incumbent platforms depends on external infrastructures and intermediaries for access, undermining their accessibility and inclusiveness, making offline capabilities a design priority.
I do not know about the offline capabilities. Can someone who has used the eNaira confirm whether you must be online to have access to it? - Trust: Striking a balance between risks and rewards of data usage is critical. Smart decisions about privacy can yield many benefits, including building public trust and avoiding centralization of data vulnerable to attacks.
The eNaira lacks this trust feature. The government collects your data and personal information. Nobody wants this. See the eNaira terms of service here - Trust: The paper underscores that the question of trust is at the core of the decisions people make about their money, and will likewise be a key factor in any successful CBDC.
In Nigeria, the reason why the eNaira didn't become a successful project is because the youths do not trust the government. From the CBN to SEC to commercial banks, we don see better shege for their hands. Why would we trust something they have control over.
- Especially considering the rise of authoritarian regimes, the acceleration of the surveillance state, and the increasing challenge of regulating the technology industry, it is far from self-evident that citizens should trust a CBDC. In order to be trustworthy for all, CBDC must be trustworthy to the most vulnerable.
During the EndSARS protest we still haven't forgotten how easy it was for the government to freeze the accounts of several young people. How does the government expects us to trust them by keeping our funds in the eNaira wallet. When we know that they can trace and freeze our funds whenever their hands gets itchy
Wetin una think? Make we yarn this matter.
