Recently, a number of initiatives were put into place by the Central Bank of Nigeria (CBN) to encourage the use of electronic payment systems in Nigeria in an effort to decrease the dependency on cash transactions and advance financial inclusion.
These efforts include restricting cash transactions and requiring companies to offer clients electronic payment options. Additionally, the CBN has provided incentives to encourage people and companies to embrace electronic payment systems.
DISADVANTAGE
The CBN’s cashless program has the drawback of potentially excluding people who do not have access to or cannot afford electronic banking services. As a result, these people might not be able to engage in the economy or access financial services, which could result in inequality and financial exclusion.
The reliance on electronic banking systems and infrastructure can also be subject to technical breakdowns and cyberattacks, which could result in financial losses for both individuals and companies.
Additionally, the move to a cashless society may raise privacy and security issues as a result of the possibility of hackers or other nefarious actors stealing or abusing personal and financial information.
ADVANTAGE
increased client convenience and transaction simplicity. decreased likelihood of theft and fraud related to physical cash.
increased financial accessibility and inclusion for underprivileged groups. increased transactional transparency and traceability.
banks and other financial entities will pay less. improved capacity of the central bank to keep an eye on and control the financial system.
The benefits, in my opinion, outweigh the advantages.
What do you think about the CBN Cashless Policy’s benefits and drawbacks?
