The Nigeria Central Bank Digital Currency// Is Nigeria Adopting Cryptocurrency?

The introduction of a digital currency known as enaira by the Central Bank Of Nigeria has raised concern among citizens. The digital currency is said to help grow the economy of the country by billions of naira, expand access to banking, and enable more remittance. As much as the currency comes with a promising profile, people are still skeptical about it with the recent suspension of cryptocurrency in the country. It looks like a big break for Nigeria to be the first country in Africa to launch a digital currency and I wonder if Nigeria is gradually adopting cryptocurrency.

The country must have faced a tough challenge to make the enaira a success with several unanswered questions. Ikemesit Effiong said he is not clear If the CBN body will be comfortable using the enaira. Another concern was that it has not been made clear whether users could transfer enaira back to traditional currency, whether the enaira could serve as a means of exchange, whether there will be a physical location for the use and transfer of enaira, or whether it will be entirely digital. During the launch, just a few radio stations were in attendance and no question was welcomed.

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The difference between Bitcoin, other cryptocurrencies, and the Nigerian enaira

Unlike other cryptocurrencies, the enaira will be issued by the government(CBN) and is a legal tender equivalent to the naira value. This means the market influence does not affect the enaira thus does not fluctuate as it is being pegged to the naira currency value. The advantage it has so far is the elimination of the third party during transactions as users go around with their wallets, an advantage to traders as no cost will be charged for holders of the account. Again, it may ease cross-border transactions. The inability for the launched enaira to increase in value would not attract investors, and may have a small number of people put their money into the wallet, what's the use of a digital currency when it has no significant advantage over the fiat?.

The fact that it's still controlled and regulated by the government makes it more like the fiat currency. Sooner or later, the Central Bank Of Nigeria may impose laws to regulate its usage. How it's going to increase the economic growth of the country by billions, no one is sure of yet, but I believe it will be through tax deducted from individuals wallets, which though may seem small, but if summed up with the millions of users could fetch a lot of money.

Currently, there's little to say about it since it's just a new project and has just been launched until people start to venture into it and use it.