Nigeria launched the state cryptocurrency back in October 2021, but it did not gain popularity. In an attempt to increase the adoption of the digital naira, the country’s central bank has restricted cash withdrawals.
The Central Bank of Nigeria has issued an order to banks and financial institutions to limit the amount of cash withdrawals from both ATMs and branches. Individuals and businesses can now withdraw $45 per day and $225 per week from ATMs. When visiting bank branches, the amounts increase to $225 and $1,125, respectively. Note that the limits can be exceeded, but then the bank will take a commission of 5% from an individual and 10% from a legal entity.
“The changes should encourage customers to use alternative channels (internet banking, mobile banking apps, card payments and digital naira) for their banking transactions,” said Haruna Mustafa, director of banking supervision at the Central Bank of Nigeria.
Although the digital naira has been around for over a year, only 0.5% of Nigeria’s population has used the government’s cryptocurrency. Note that earlier in Nigeria there were restrictions on cash withdrawals, but the limit was much higher – $338 for individuals and $1,128 for legal entities, respectively.
Source: Bits
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