CENTRAL BANK DIGITAL CURRENCY AND PAYMENT PROSPECTS IN RETAIL TRANSACTIONS OF THE SMALL AND MEDIUM ENTERPRISES (SMES) IN FEDERAL CAPITAL TERRITORY (FCT), ABUJA

Abstract

This paper explores the potential of Central Bank Digital Currency (CBDC) and its impact on retail transactions, specifically focusing on Small and Medium-sized Enterprises (SMEs) in the Federal Capital Territory (FCT), Abuja. Primary and secondary data from CBN and official documents were used for the analysis. Everett Rogers, (1962) diffusion innovation theory was adopted as theoretical framework of analysis. Data collected were presented in frequency tables and analysed using percentage tool. The findings revealed that implementing a Central Bank Digital Currency (CBDC) in retail transactions holds significant potential benefits for small and medium-sized enterprises (SMEs) in Abuja. It was therefore recommended that the authorities should undertake awareness campaigns to educate SMEs in Abuja about the advantages of using CBDC in retail transactions.