Nigeria Limits ATM Withdrawals to $225 Weekly in a Bid to Boost CBDC Adoption

The Central Bank of Nigeria (CBN) issued a directive according to which locals can withdraw a maximum of $225 per week from ATMs.

The institution raised hopes that it could stimulate the usage of mobile transactions, credit/debit cards, and eNaira. 

  • The CBN has already established a policy to reduce the amount of cash in circulation in the country. The endeavor aims to encourage more electronic-based transactions and thus drive the development and modernization of the domestic payment system.
  • The institution went further in its mission, limiting cash withdrawals to $45 per day and $225 per week from ATMs. Individuals will be slammed with a 5% service fee, while businesses will pay 10% if they exceed that amount.
  • The Director of Banking Supervision – Haruna Mustafa – believes the step should boost the usage of alternative financing methods, including mobile banking applications, Internet banking, and Nigeria’s CBDC – eNaira. The rules will take effect from January 9, 2023.
  • The limits on daily cash withdrawals before that were $337 for individuals and $1,122 for businesses.
  • The CBN has been an opponent of cash for years now. The institution thinks too much paper money in circulation propels corruption, leakages, money laundering, and other fraudulent activities. 
  • High cash usage results in a lot of money outside the formal economy, thus limiting the government’s efforts to cope with inflation and encourage economic growth.
  • Speaking of CBDCs, the African nation is among the global leaders in this field. The CBN launched the eNaira in October 2021 under the slogan “Same Naira, more possibilities.” 
  • The bank tried to accelerate the advancement of the financial product in May this year, allowing local residents to pay their bills, TV subscriptions, and flight tickets using the CBDC.
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Source: https://cryptopotato.com/nigeria-limits-atm-withdrawals-to-225-weekly-in-a-bid-to-boost-cbdc-adoption/