Nigerian President Muhammadu Buhari launched eNaira a central bank digital currency. The institution recalls that this progress is based on several years of research, and meetings with several players in the field, including banks, FinTech solutions operators and merchants.
With a population of 211 million, Nigeria’s CBDC trial now becomes the second largest behind China’s digital yuan. On top of that, over 62 percent of Nigerians are aged 24 or under, making the eNaira available to a largely digitally native population. Launch of digital currency can increase the GDP of Nigeria to $29 Billion over the next 10 years. Nigeria is now sixth in terms of digital currency adoption across the globe. Nigerians can now use eNaira for cross borders transactions. Approx 1.5 million Nigerians were using Bitcoin for overseas transactions can now use eNaira.
This digital currency is developed by Hyper Ledger Fabrics. eNaira app is now available to download on App Store for IOS users and Google’s Play Store for Android users. In order to use eNaira app, one has to complete their verification. The Nigerian Government will be a able to control and monitor all eNaira transactions. Users can link their bank accounts to eNaira app to add and withdraw funds.
“As Nigeria is still considered one of the most ‘unbanked’ countries in the world, decentralized identity systems and CBDCs will provide the population with a way to prove their identity and get access to banking services directly from their smartphone,” Ben Constanty, co-founder of Smartlink, told CoinDesk. “It also means that every transaction will go through that system in order to buy and sell things.”
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