There was a lot of buzz at the beginning of the year among economists and countries trying to develop their digital currencies. This was when Central Bank Digital Currencies (CBDC) took the world by storm. After realising that countries could develop their digital currencies, most African countries published articles about developing a digital currency. This news spread all over the world. Masses and experts were anxiously waiting to see the growth of CBDCs.
Nigeria has been making headlines often when it comes to cryptocurrency. The country is the third-largest cryptocurrency market in the world, only behind the United States of America and Russia. Nigeria’s government has imposed taxes and laws limiting cryptocurrency use in their jurisdiction. This shows Africa’s resilience.
It does not fully support cryptocurrency. The Nigerian government and their Central Bank have worked hard and fast to develop their digital currency. The 200 million citizens in the country found a way to invest in technology. This is inspiring the government to do something to benefit from crypto as well. On Monday, the 13th of June 2022, President Muhammadu Buhari and his officials launched eNaira. This is the first digital currency on the entire continent. This is a step forward in improving digitisation and the adoption of cryptocurrency.
According to the information disclosed during the event, eNaira will be operational and ready for use by October. Nigeria will be the first to have a digital currency with the support of its central bank in Africa. Their efforts will promote digital currency adoption and make other African countries with similar goals hasten their development. One of the countries that will possibly release their version of the eNaira is Ghana. Ghana has been working on the e-Cedi for months now.
Why e-Naira?
- Improve and ease transactions being made across the border.
Because the money is digital, internal transactions will be shorter and more efficient. This is why cryptocurrency has been so effective in the market. The e-Naira is trying to offer competition and get a portion of the cryptocurrency market.
- The digital currency will make it easier for people in other countries to invest in Nigeria. It will also prompt people in the diaspora to send money back to their home country.
