eNaira will continue to circulate alongside its fiat counterpart, however, promising a faster, cheaper, and more secure option for monetary transactions.
The Nigerian Federal High Court joins the growing list of regulators across the globe to approve the rollout of a central bank digital currency (CBDC) as a legal tender. Named eNaira, the digital currency will be issued by the central bank and supported by a homegrown eNaira wallet.
Nigeria’s CBDC issuance approval was revealed in a federal court hearing held on October 2 led by Justice Taiwo Abayomi Taiwo, according to a report by Voice of Nigeria. The official eNaira website says that the digital version of the Nigerian naira will be made available universally, stating “anybody can hold it.”
As previously reported by Cointelegraph, the launch of the Nigerian CBDC was dedicated to mark the country’s 61st Independence Day. While eNaira will continue to circulate alongside its fiat counterpart, it is marketed as a faster, cheaper, and more secure option for monetary transactions.
It is important to note that the move to introduce digital naira also coincides with the falling value of the nation’s fiat currency, currently standing at its lowest point since 2003.
A recent Cointelegraph report shows that Kenya, South Africa, Nigeria and Tanzania have seen the highest crypto adoption among the African nations, resulting in a 1200% market growth between July 2020 and June 2021.
Supporting data from Chainalysis suggests that P2P platforms, banking restrictions, and fear of inflation have contributed to the growing market in Africa. As a result, the region continues to attract investments, the latest leading to a $15 million Series A funding for Yellow Card crypto exchange.