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Electronic Money, Digital Cloud Payments, Banknote Redesign Policies and Currency in Circulation: Relevance of Cashless System and Technology Acceptance Theory in Nigeria

EFUNTADE, Alani Olusegun, FCIB, FCA. EFUNTADE, Olubunmi Omotayo, PhD

Abstract

The electronic money, digital cloud payments, banknote redesign policies and currency in circulation vis-à-vis relevance of cashless system and technology acceptance theory in Nigeria is a rarely covered topic. Design policies are used by central banks to give direction to the design process of banknotes. The study of the banknote design policies of the past century shows that ‘technology-centred policies’ are gaining popularity. Even cryptocurrencies such as Bitcoin, Ethereum, Facebook’s Diem, Corda, Fabric and Ripple are competing for a spot in the cashless world, constantly reinventing themselves in the hope of offering more stable value, and quicker, cheaper settlement (Chapman, 2021; (Shao et al., 2021; Zhang & Huang, 2021). The sole aim of introducing digital currency is to reduce the volume of physical currency in circulation which in turn destabilizes socioeconomic development of a country (Barontini & Holden, 2019). It is well-known fact that many people and businesses don’t accept innovations especially the ones caused by technology. Finally, from the literatures reviewed, the redesigning of the Naira is for economic reasons which is not limited to reducing inflation, combating counterfeiting, checking financial insecurity and reducing the money in circulation. There has been a wide acceptance of electronic banking in Nigerian banks and technology has become more popular as service offering to customers have become more convenient, thereby, leading to an increase in competitiveness and profitability. There is a swift variation in the method of conducting business globally and in Nigeria, particularly which is borne from advancement in e-banking. Awolusi and Aduaka (2020) has said that it is becoming progressively difficult to satisfy customer expectations. The cashless economy does not imply an outright end to the circulation of cash (or money) in the economy but that of the operation of a banking system that keeps cash transactions to

Keywords

Digital cloud payment platformelectronic moneybanknote redesign policyphysical currency in circulation and cashless systemtechnology acceptance theory (TAT)

References

Abubakar, Y., & Yandaki, U. A. (2023), The 2022 Naira redesign programme in Nigeria: Implications on the local economy and financial History. African Journal of Accounting and Financial Research 6(2), 22-32. Adegboyega, A. (2022). CBN Amends Cash Withdrawal Policy, Raises Weekly Limits. Premium Times, December, 21. Agur, I., Ari, A., & Ariccia, G. D. (2021). Designing Central Bank Digital Currencies. Journal of Monetary Economics, 8(3),23-34.

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