A Proposal on the Impact of E-Naira in Tracking Money Laundering and Fraud in Nigeria
Chapter One
Objective of the study
The broad focus of this study is to examine the impact of e-Naira on tracking money laundering and fraud in Nigeria. Specifically the study seeks to:
- Examine the perception of users on the security of their e-wallet.
- Determine if the introduction of e-Naira will increase money fraud rate in Nigeria.
- Ascertain if the invention of e-Naira will heighten hacking of online transaction.
- Investigate if the e-Naira platform has the capacity to track money laundering in Nigeria
Chapter Two
REVIEW OF RELATED LITERATURE
Introduction
Ozili (2019) states that blockchain is a ledger that record transactions involving digital currencies including cryptocurrencies and central bank digital currency. Bordo and Levin (2017) show that CBDCs are useful for transparent conduct of monetary policy. They show that CBDC can serve as a costless medium of exchange, secure store of value, and stable unit of account. Engert and Fung (2017) argue that the relevance of CBDC in facilitating retail payments depends on the specific attributes of the CBDC such as whether the CBDC bears interest or is non-interest bearing. Barontini and Holden (2019), in a survey of studies on CBDC, observe that many Central Banks are progressing from conceptual work into experimentation, proofs-of-concept, and are in cooperation with other Central Banks. Only few Central Banks are proceeding to the pilot stage with CBDCs, and even fewer Central Banks see the issuance of a CBDC as a short or medium term goal. Ozili (2021a), in a survey of CBDC adoption in Africa, show that over 70 per cent of African countries do not show any interest in adopting a central bank digital currency, while on three African countries have a robust payments infrastructure to support a CBDC. Grym et al (2017) show that CBDC will not only enable the general public to hold CBDC, it will also have significant implications for other areas of central bank policy. Andolfatto (2021) investigates the impact of CBDC on banks, and find that interest-bearing CBDC will increase financial inclusion, diminish the demand for cash and expand the depositor base of banks if the added competition compels banks to raise their deposit rates. Davoodalhosseini (2021) investigates the optimal monetary policy when only cash, only CBDC, or both cash and CBDC are available to agents in Canada. He finds that a more efficient allocation can be implemented by using CBDC than with cash if the cost of using CBDC is not too high. Also, the welfare gains of introducing CBDC are estimated at 0.64% for Canada. Wadsworth (2018) finds that the pros and cons of a Central Bank issued digital currency are mixed across each of the different Central Bank functions. Ozili (2021b) describes how the creation of a central bank digital currency can lead to the collapse of digital currencies including cryptocurrencies and bitcoins. Ozili show that Central Banks will leverage on their monetary powers and the trust that citizens have in government-backed money. This will give central banks strong incentives to issue a central bank digital currency. He further stressed that the issuance of a central bank digital currency can erode trust in cryptocurrencies, and can lead to the collapse of cryptocurrencies although not immediately. Náñez Alonso et al (2021) analyse CBDC status in countries like the Bahamas, China and Uruguay. They find that these countries are at different stages of CBDC development. Bjerg (2017) argues that a monetary system that has two competing money creators – the central bank and the commercial banking sector – can simultaneously only pursue two out of the following three policy objectives: (i) free convertibility between CBDC and bank money, (ii) parity between CBDC and bank money, and (iii) central bank monetary sovereignty. Ward and Rochemont (2019) show that many central banks have a negative view on cryptocurrencies and they promote CBDCs even though the international community has divided opinions on the potential benefits of CBDC itself.
Chapter Three
RESEARCH DESIGN AND METHODOLOGY
The researcher used descriptive research survey design in building up this project work. The choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of e-naira in tracking money laundering in Nigeria
Chapter Four
METHOD OF DATA ANALYSIS
The researcher will employ oral and direct interview in administering this research questions. Responses from the respondents were needed unlike questionnaires, which is less rewarding due to late receipt and loss of responses from respondents. The method of data analysis that will be used by the researcher is the simple percentage. More so, percentage and degrees of the responses will also be used in the analysis. Here, the ratio of those whose responses were not in the affirmative will be found and conclusions will be drawn there upon. Representations of the level of responses will be made in tabular form. The Statistical Package for Social Sciences (SPSS) software will be used to test the hypotheses
References
- Andolfatto, D. (2021). Assessing the impact of central bank digital currency on private banks. The Economic Journal, 131(634), 525-540.
- Barontini, C., & Holden, H. (2019). Proceeding with caution-a survey on central bank digital currency. Proceeding with Caution-A Survey on Central Bank Digital Currency (January 8, 2019). BIS Paper, (101).
- Bjerg, O. (2017). Designing new money-the policy trilemma of central bank digital currency. CBS Working Paper, June.
- Bordo, M. D., & Levin, A. T. (2017). Central bank digital currency and the future of monetary policy (No. w23711). National Bureau of Economic Research.
- Davoodalhosseini, S. M. (2021). Central bank digital currency and monetary policy. Journal of Economic Dynamics and Control, 104150.
- Engert, W., & Fung, B. S. C. (2017). Central bank digital currency: Motivations and implications (No. 2017-16). Bank of Canada Staff Discussion Paper.
- Grym, A., Heikkinen, P., Kauko, K., & Takala, K. (2017). Central bank digital currency. Bank of Finland BoF Economics Review, No 5.
- Náñez Alonso, S. L., Jorge-Vazquez, J., & Reier Forradellas, R. F. (2021). Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 72.
