This is programmable money where the government controls how and when you can spend it. It does not take long for most people to figure out how this restricts their freedom. I guess they will make it a bargain in some way such as charging a higher rate for cash as they are doing here. This may be a training ground for other governments to learn how to force or incentivize us to use their CBDC's.
For anyone unsure as to why CBDC's are a horrendous idea please read this thread:<p><a href="https://twitter.com/punk6529/status/1494444624630403083?lang=en" rel="nofollow">https://twitter.com/punk6529/status/1494444624630403083?lang...</a><p>Or as an unrolled thread here: <a href="https://threadreaderapp.com/thread/1494444624630403083.html" rel="nofollow">https://threadreaderapp.com/thread/1494444624630403083.html</a>
55% of Nigerians have access to electricity.<p><a href="https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=NG" rel="nofollow">https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?location...</a><p>Seems like the government knows their priorities.
Can someone explain to me why this wouldn't have the perverse effect of discouraging the use of conventional bank accounts and causing people to just hold onto their cash or to put it in the equivalent of safe deposit boxes, or for wealthier people, to use "offshore" banks or to purchase assets easily convertible into cash?
As a Nigerian, one of my biggest goals is to save enough to invest in a second passport. Since the last administration took over, their policies have been spectacularly bad - and that's coming from me, a Nigerian (and African) who has only known bad government all his life.<p>When COVID-19 kicked in and oil revenues dried up, the government turned on the printing presses and churned out an awful amount of Nairas. Like anyone who has a basic knowledge of economics would have expected, the Naira tanked - aggressively. From around N365/$1 to N740/$1 as of today (i.e., on the black market).<p>Instead of facing up to the problem, the government has created multiple exchange rates, demonized bureau de change operators, and generally restricted how much FX you can access.<p>And as presidential elections are coming up in 2023, millions of citizens are still eager to vote for the clowns that will just crank the lever to 11.<p>At some point, you just feel trapped. Most citizens don't even recognize it and the CBDC was launched without no opposition.<p>Come to think of it, it was launched after a series of anti-government protests in OCTOBER 2022. So, the government started tying SIM cards to personal ID numbers and trying to force a CBDC. So, if such a protest should repeat itself, you just get cut off from the financial system without fanfare.<p>That's what pains me: those who were protesting government brutality in October 2020 have said nothing about this and they see it as just another step towards a digital economy.<p>It's so discouraging being a libertarian and knowing how this will end.
The title is a bit of an exaggeration. Withdrawals above that are not banned, but subject to a 5% fee. Also, it is not a new rule but a lowering of the limit of an existing rule.
this is way to 'promote' CBDC adoption - increase the friction on the use of cash or digital alternatives. From the POV of the central govt, you can see why CBDC makes sense - it will certainly increase state power, and by extension, national power. Interesting to see Nigeria pioneer these techniques, I wonder whether Africa will end up leading the way here
Two years ago, digital ID, central bank and one currency was a fake news. Now it is not. No wonder that so called fake news are so popular.<p>Great documentary about this topic, State of control (2022) is here: <a href="https://player.vimeo.com/video/769876604" rel="nofollow">https://player.vimeo.com/video/769876604</a>
I was part of a team working on a CBDC and I'm glad I left that project. The possibilities of abusing a CBDC are massive and gladly we had tough time finding a benign use case for it.<p>We are already cashless let's keep it that way
The story seems to just assert the claim that this is to promote the CBDC, but the linked directive does not.<p>I mean, they definitely wish adoption was higher. But is there evidence this isn't just CoinTelegraph assuming things?
Given that there's always going to be demand for a non-digital currency outside of the control of a central government (which I believe is good for many perspectives although the demand for something like this is far below what most crypto bros will try to convince you of), I do wonder how people are going to transact in those situations. Gold? Monero? US Dollars or other currencies?
I think it's important to focus on the 'Central Bank' part, more than the digital currency part. What are their incentives and do they align to a more open and free society?
For anyone learning about CBDCs for the first time, here's a podcast that goes in depth about them. [0]<p>[0]: <a href="https://www.corbettreport.com/cbdc/" rel="nofollow">https://www.corbettreport.com/cbdc/</a>