Impact of Currency Redesign and Cashless Policy on Household Standard of Living in Sokoto Metropolis
DOI:
https://doi.org/10.61143/umyu-jafr.6(1)2024.017Keywords:
Currency redesign, Cashless policy, Standard of living, SokotoAbstract
This study investigates the impact of currency redesign and cashless policy implementation on household standard of living in Sokoto Metropolis using a survey dataset for a sample of three hundred and sixty-five (365) respondents. In the analysis, this study used Ordinary Least Squares regression and the results reveal that currency redesign has significant negative effect on household standard of living while the cashless policy has had a positive and significant effect on household living standards. Additionally, broader economic and environmental conditions, such as political instability, transportation costs, climate change, and rising commodity prices, have also played a significant role in shaping household welfare. However, the adverse effects of currency redesign highlight the need for policymakers to carefully manage the implementation of such reforms to minimize disruptions to the economy. The findings suggest that the cashless policy has been effective in driving financial inclusion, reducing transaction costs, and creating economic opportunities for households. Moreover, the significant influence of macroeconomic and environmental factors underscores the importance of adopting a holistic approach to policymaking, addressing both financial sector developments and broader economic challenges. To build on the benefits of the cashless policy, the study recommends that policymakers focus on addressing implementation challenges, strengthening supporting infrastructure, and ensuring the transition is inclusive. Concurrently, efforts should be made to mitigate the negative impacts of currency redesign and other macroeconomic risks through appropriate policy interventions and coordination across relevant sectors. By adopting this comprehensive approach, Nigeria can maximize the potential of the cashless economy to drive sustainable economic development and improve the overall standard of living for its citizens.
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