Nigeria Upgrades CBDC to Steer People Away from BTC and Altcoins
DailyCoin
Published May 10, 2022 08:59AM ET
Updated May 10, 2022 09:30AM ET
Nigeria Upgrades CBDC to Steer People Away from BTC and Altcoins
- The Central bank of Nigeria has upgraded their native digital currency, the eNaira, to keep the public away from using crypto alternatives. It seems that Nigeria is eager to push eNaira as much as possible, while at the same time implementing harsh restrictions on cryptocurrencies. The legislative direction has already been monitored by the UN, which reported that the harsh restrictions are suppressing the African nation’s fintech sector. The head of the Central Bank has received a notable amount of critique from not only international institutions, but local politicians as well.
We need a New @cenbank Governor. I will consult for free to make sense of the #eNaira in less than 6months under a sane administration. Rather than telling you how to strengthen the Naira, we can demonstrate it and experience the change. #AnotherContribution #StableCoin pic.twitter.com/bzo1SEEVbK— SEGA L'éveilleur® (@segalink) May 10, 2022
The Central bank’s spokesperson, Bariboloka Koyor, emphasized the importance of early adoption. According to Koyor, once the e-Naira takes off in the country, it will be the only way to receive financial aid from the local government. In addition to this, research carried out last month revealed the e-Naira to be ranked as the most developed CBDC in the world, beating out those of China, South Korea and Bahamas.
Nigeria’s e-Naira has been ranked as the most developed Central Bank Digital Currency (CBDC) in the world after beating out Bahamas, China, South Korea and other countries to lead the top 10 rank.So, don't be bitter about E-Naira o! pic.twitter.com/Y0GnveL9AzCompetition Between CBDCs and Crypto Is Heating up— Taiwo_Ajakaye (@dmightyangel) April 11, 2022
Last year, the Nigerian government ran a pursuasive promotional campaign for the eNaira, led by the tagline “Same Nara, more possibilities.” However, the naira itself has plummeted by 209% in the last six years. Faced with this reality, a huge number of Nigerians took interest in crypto. Just last month, one popular Nigerian crypto exchange revealed that over 33 million Nigerian citizens held or traded cryptocurrencies in the second half of 2021
Ever since the eNaira’s launch in October last year, the rules on crypto trading have been tightened. Commercial banks are now required to track their clients activity and report to the government if any sign of crypto trading is picked up. This has already caused significant damage to the IT sector, especially fintech, as explained in a report by the Secretary Generals of the Organisation for Economic Co-operation and Development and the United Nations.
Get The News You Want
.@GodwinIEmefiele: #eNaira will speed up rate of Nigeria’s financial inclusion | TheCable https://t.co/x8mv4Ln8Mz pic.twitter.com/VDtUS0YVWJExpressing concern for young adults working in the technology sector, the report stated: “The restrictions on cryptocurrency transactions in Nigeria have crippled foreign direct investment in the fintech industry”.— TheCable (@thecableng) May 10, 2022
To summarize, the CBDC doesn’t seem to be showing any signs of slowing down. Recently, it was reported that a whopping 80% of central banks are working on their own digital currencies. China was the first country to put the ambition to practice and now offers its digital yuan app to citizens from 23 cities, with plans to expand further.
Continue reading on DailyCoin
Written By: DailyCoin
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.