Assessing global and local interest in eNaira CBDC and cryptocurrency information: implications for financial stability

Abstract

PurposeThis paper investigates the global and local interest in Internet information about cryptocurrency and the Nigeria central bank digital currency, which is also known as eNaira.Design/methodology/approachGranger causality test and GMM coefficient matrix methodologies were used.FindingsThere is sustained increase in global and local interest in Internet information about eNaira in the first six weeks after eNaira adoption. Local interest in Internet information about cryptocurrency in Nigeria exceeded global interest in Internet information about cryptocurrency. The south-east region had the highest interest in cryptocurrency information followed by the south-south, the north-central, the north-east, the north-west and the south-west regions. In contrast, the north-east region had the highest interest in Internet information about eNaira, followed by the north-west, the north–central, the south-west, the south-south and the south-east regions. Nigeria recorded the highest global interest in Internet information about cryptocurrency and eNaira, while Japan and Brazil recorded the lowest interest during the period. The correlation results show a significant and positive correlation between interest in cryptocurrency information and interest in eNaira information. The Granger causality results show that global interest in cryptocurrency information causes both global and local interest in eNaira information. Also, local interest in cryptocurrency information causes global interest in eNaira information. The GMM regression coefficient matrix shows a significant positive relationship between interest in cryptocurrency information and eNaira information.Originality/valueThere are few studies on CBDC in country-specific contexts. This study adds to the literature by examining the Nigerian context.