Since the launch of eNaira on October 25, Nigerian the most populous country in Africa has become the latest to launch digital currencies, jumping over many other central banks around the world. France, China and Germany are all testing electronic currencies.
As a sign of how the development of official digital currencies is accelerating, the G7 developed countries group last month provided guidelines to ensure that currencies "support and harm" traditional financial and financial systems.
Radia Khan, chief economist for Africa and the Middle East at Standard Chartered Bank, said the central bank was "processed and regulated" in response to a pandemic that "indicated the need to adopt digital payment channels." Don't see any digital currency alternatives gaining greater traction.
Central Bank of Nigeria executives said the first week and a half of the entire saw 400,000 new wallets were registered from many countries and customers made 12,500 transactions, equivalent to 46.3 million nairas ($113,000). said it was a "great success." This was despite customers complaining about the tedious sign-up process.
Nigerians Conscious of the eNaira
However, in a response to the question asked analysts whether an eNaira built on blockchain technology but not a cryptocurrency could meet central bank goals of reducing transaction cost, borders including domestic remittances. It enables cross-flow facilitation, more people's financial system and more targeted social and welfare spending.
"The problem is that we can already adequately address all of this using our existing financial payment system," said Adedayo Ademuwagun, an analyst at Songhai Advisory. "Since Nigeria is the capital of FinTech in Africa, there are already many options and there are many ways to pay someone and pay quickly."
Ronak Gadhia, an analyst at emerging market-focused investment bank EFG-Hermes, said low-cost transactions could "make eNaira very important and disruptive." However, there is uncertainty about how widespread it will be."
The government effectively knows every transaction you make with a digital currency in places like Nigeria where there is some distrust between ordinary Nigerians and the government, there may be scepticism about adoption, " he said
Pointing out how CBN frozen the account of those protesting the #Endsars anti-police brutality that happen in Lagos last year.
eNaira is even easier for government to close peoples account or shut down the entire system.
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