Nigerian President Muhammadu Buhari should launch a central bank digital currency (CBDC) today to improve the operations of the country's payment system.
"Next [a] series of engagements with relevant stakeholders, including the banking community, fintech operators, merchants, and indeed a cross-section of Nigerians, the CBN designed the digital currency. โ Central Bank of Nigeria (CBN) said.
According to the bank, the project will continue "with a series of modifications, capabilities and additional improvements to the platforms."
The eNaira website went live on September 30, a day before its official launch which was previously scheduled for October 1.
CBN is promoting the new CBDC with the slogan: "Naira herself, more possibilities."
Observers say the development could be part of efforts by Nigerian authorities to use the eNaira project to counter the growing popularity of cryptocurrencies among the country's population.
Last August, the digital asset research firm Arcane Research noted in a analysis that since the adoption of cryptocurrencies is on a growing trend in Nigeria, the government of the country is striving to "curb the adoption of bitcoin (BTC), partly motivated by the desire to freeze the protesters of the EndSars movement to receive funds to finance its operations ".
โHowever, unsurprisingly, stopping a globally marketed censorship-resistant alternative to Naira was more difficult than anticipated. Where there is a will, there is a way, and Nigerian citizens have been avid users of Peer-to-Peer markets. This has now led Sub-Saharan Africa to become the largest region in terms of volume of operations in the Peer-to-Peer markets worldwide, โaccording to the firm.
A recent report by blockchain analytics company Chainalysis classified Nigeria as the sixth country in the Global Crypto Adoption Index, preceded by Vietnam, India, Pakistan, Ukraine, and Kenya, respectively.
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Learn more:
- See FSB Roadmaps for Stablecoins and CBDC
- The financial system is in 'an era of disruption', admits BIS official
- IMF: Issue CBDC, Improve Cross-Border Payments to Counter 'Phenomenal Growth' of Cryptocurrencies
- Visa testing regulatory waters before 'tampering' with its CBDC solution
