Nigeria now joins the Bahamas, which launched the Sand Dollar, a general purpose central bank digital currency, in October.
Nigeria on Monday became the first African country to launch a digital currency. It launched a digital currency called eNaira. Its leaders said that this is a step that will also reach banking. With its arrival, the country’s economy will develop into millions of dollars.
Nigeria, Africa’s most populous country, now joins the Bahamas, launching a general purpose central bank digital currency in October. It is called Sand Dollar. Similar trials are underway in China, while Switzerland and the Bank of France have announced Europe’s first cross-border experiment.
But experts and cryptocurrency users from the continent’s largest economy say there are more questions than answers about eNaira. And the growing concern over the stability of Central Bank (CBN) regulations means that the government may face a difficult road to make eNira a success.
Central Bank Governor Godwin Amphile said during Monday’s launch that there was a lot of interest and enthusiastic response from the public. This is evident from the fact that 33 banks, 2000 customers and 120 merchants have already successfully registered themselves on the platform. The platform remained available through the app on Apple and Android.
President Muhammadu Buhari said that using the currency could boost the economy by $29 billion (about Rs 2,17,850 crore) in ten years, enable direct government welfare payments and even expand the tax base. Is.
Nigeria’s young, tech-savvy population has openly embraced the digital currency. The use of cryptocurrencies has grown exponentially, despite the central bank banning or facilitating transactions in cryptocurrencies in banks and financial institutions in February.
Nigeria ranks seventh in the 2021 Global Crypto Adoption Index released by research firm Chainalysis. Official digital currencies, unlike cryptocurrencies like bitcoin, are backed and controlled by a central bank of Nigeria.
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