eNaira Updates: Since its introduction last year under the tagline ‘Same Naira, More Possibilities,’ Nigeria has been attempting to encourage more individuals to adopt its national digital currency, the eNaira. The Central Bank of Nigeria (CBN) is allegedly considering allowing consumers to use the eNaira for everyday transactions like as travel bookings and utility bill payments.
THE GOAL IS TO INCREASE THE NUMBER OF PEOPLE WHO UTILISE THE NIGERIAN CENTRAL BANK DIGITAL CURRENCY (CBDC).
According to a story published by the Nigerian journal Vanguard on May 9, the CBN is considering updating the CBDC next week, making it appropriate for daily payments in the country. Nigeria’s central bank has teamed with Bizi Mobile, a mobile banking company, to enable user payments via the CBDC. Furthermore, the CBN official stated that eNaira might assist poor Nigerians who will receive compensation from the government through the CBDC.
“This is an initiative that the CBN has pushed out to reach out to every Nigerian in terms of financial inclusion and banking transaction efficiency, reliability, and safety so that we can perform banking transactions very easily and safely and the people of Nigeria can benefit from the eNaira,” Koyor said.
NIGERIA’S GOVERNMENT IS ENCOURAGING CITIZENS TO BECOME EARLY USERS OF THE ENAIRA CBDC.
Nigeria has joined the list of African countries that have experimented with cryptocurrencies in recent years, including Kenya, Tanzania, and South Africa. According to a survey published in September by Chainalysis, the crypto markets in Nigeria, Kenya, Tanzania, and South Africa grew by 1,200 percent in a year, reaching a market valuation of $105.6 billion (approximately Rs. 775 crores).
The key driver of crypto adoption in these African regions is inflation. Nigeria’s inflation rate increased to 12.8% in 2020 from 11.4 percent in 2019. Nigerians have been experimenting with virtual assets despite the CBN’s decision not to legalise crypto-trading in the country.
According to research firm Triple-A, nearly 13 million Nigerians would possess cryptocurrencies by 2021. This equates to 6.3 percent of the overall population of Nigeria. While the CBN has been open to promoting its CBDC, it has been firm in its refusal to grant crypto trading legal status in the country.
CBDCs are structured similarly to cryptocurrencies and rely on blockchain networks as its underpinning technology. CBDCs, in contrast to the generally untraceable and unregulated crypto transactions, are issued and regulated by central banks. India, Russia, and Jamaica, for example, have already started work on their CBDCs.
• Nigeria is attempting to increase the adoption of CBDC.
• Bizi Mobile has teamed with Nigeria’s central bank.
• CBN’s Bariboloka Koyor verified the development.