In the last couple of days, i have been talking about this thread on the new central bank of Nigeria policy with backing of the Federal government of Nigeria creating new policy which is basically to promote Internet banking and cashless policy. Before I go further, I have read lot of blogs from different people having their take on this new policy from CBN and to my surprise, lot of people castigated this move by CBN policy while they ignore the positive side of the new CBN policy
Fine, I know this new policy has it advantages and disadvantages but which I guess the disadvantage part can still be readjusted to fit-in in some areas. I have been able to picked at random to talk about both the advantages and disadvantages the new CBN policy might bring.
How too many cash at hand has debt Nigeria economy.
If I must, I can pretty say that Nigeria economy transaction has been on both cash payment and internet payment;both is at par. Even if one is over the other,it's just going to be a little difference. One of things that devalue Nigerian currency value is that, most Nigerians are hoarding the naira currency which they probably got by through embezzlement. If you check the internet, there are lot picture footage how a lot of many bundle naira note are being discovered I'm state like Lagos state, Abuja and Rivers State. The worst part is, most of these naira currencies have been damaged with no strength in them to be spent.
I was able to talk to a friend of mind who works in one of the banks in Nigeria. He said after the new policy was made by CBN, that the rate at which people are taking their money to the bank for deposit is at high. According to him, he said some of the naira notes have even lost strength to withstand holding, spending and mobility habit.
How the new CBN policy might curb embezzlement and hoarding?
If you follow the new policy thread in Nigeria, one would observe that,it was naira notes redesigning that came first before the latest CBN policy follows. When the move was made to redesign the naira notes, order were given which worked out, people started depositing their hold naira notes because deadline was given. This move was made to reduce hoarding of naira currency. It's stated that there's no money in circulation just because most of the printed money is being hoarded.
Secondly, the new CBN policy that was made is meant to promote Internet banking with stated amount that can be withdrawn per day is which is cash at hand to be N20,000 daily, that's total of N100,000 weekly. This is it, if we have enough money in circulation even by means of internet banking, this will curb unnecessary hoarding and embezzlement of currency.
Please note that, this isn't an economy, cryptocurrency, financial or business advice,it's just an opinion. If you need a cryptocurrency, financial or business advice, consult a cryptocurrency or financial experts. Thank you.