Nigeria this week launched its central bank digital currency (CBDC), eNaira, becoming the first country in Africa to do so.
President Muhammadu Buhari announcement the official central bank-backed eNaira rollout at the State House in the nation’s capital, Abuja, with the theme âEven Naira, More Possibilitiesâ. Senior government officials such as Vice President Yemi Osinbajo, Central Bank of Nigeria (CBN) Governor Godwin Emefiele and other dignitaries were also present at the launch.
Digital currency has two applications: the eNaira Quick Wallet and the eNaira Merchant Wallet. Both apps were also launched at the State House in Abuja and are available on the Google Play Store and the Apple App Store for users to download.
Plans on the new payment system have been underway for the past four years. According to the Governor of the Central Bank of Nigeria, Godwin Emefiele, 500 million eNaira ($ 1.21 million) has already been minted.
Buhari said the adoption of the new CBN digital currency is expected to increase Nigeria’s GDP by $ 29 billion over the next 10 years. In a declaration, he said: âWe have become the first country in Africa and one of the first in the world to introduce a digital currency for our citizens.
The functions of enaira
According to official site, eNaira will provide fast, easy, inexpensive and secure payment methods for organizations and individuals.
The advantages of digital currency include serving as both a medium of exchange and a store of value, offering better payment prospects in retail transactions compared to cash payments; it also promotes economic growth by providing easier access to capital and financial services, thereby increasing economic activities at low / interest-free transaction rates. The currency also has traceability features that limit its use for illicit or fraudulent purposes, while providing financial inclusion by making financial services available to users who do not have banking opportunities. Finally, digital assets also facilitate cheaper diaspora remittance options and an increase in the speed of those transactions, according to the central bank.
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