Impact Of Digital Currency On Nigeria's Monetary Policy: A Comparative Analysis With Traditional Fiat Currency

The objective of the study is to review the impact of digital currency on Nigeria's monetary policy, including its potential effects on inflation, exchange rates, and the overall economy.The study reviewed existing literature on the impact of digital currency on monetary policy, including its effects on inflation, exchange rates, and the overall economy.The study revealed that digital currencies can have a significant impact on exchange rates and monetary policy, and that a well-designed regulatory framework is crucial in shaping monetary policy towards digital currency, amidst the concerns about the negative effects on traditional fiat currency and economic stability persist.Nigeria's financial industry might be revolutionized by digital currencies, but in order to preserve economic stability, it is crucial to control how they affect conventional monetary policy tools.The suggestions include establishing a framework for regulating digital currencies, informing the public about the dangers, carrying out more research to comprehend how monetary policy and digital currencies interact, and encouraging financial inclusion and literacy to promote the adoption and use of digital currencies for development.