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eNaira CBDC Struggles for Acceptance in Nigeria

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Nigeria launch A central bank digital currency (CBDC) known as e-Naira was launched late last year. After launching, Nigeria became the first African country to release her CBDC. However, CBDC has struggled to gain acceptance in Nigeria.

e-Naira CBDC Acceptance Still Low

Nigeria is looking to the informal sector to boost the adoption of e-Naira. The government is offering his 5% discount to motorized rickshaw drivers and passengers who use e-Naira. The company seeks to support the growth of the e-Naira program.

Only 1 in 200 people in the country are interested in e-Naira. Nigeria’s central bank is focused on digital currencies. Still, the move has caused confusion as most Nigerians do not understand the difference between government-backed and private digital currencies.

Electric rickshaws are the most popular mode of transportation in Nigeria. These rickshaw drivers are baffled by the government’s desperate efforts to promote e-Naira.

Nigeria’s central bank has banned commercial banks from expanding cryptocurrency services. That is why some rickshaw drivers are wondering why the government is pushing e-Naira when they have already informed the public that cryptocurrencies are bad.

Nigeria has become the first African country to open a CBDC. The country targeted about 40 million unbanked people. However, this goal has not yet been achieved due to the slow adoption of these currencies.

Cryptocurrencies have become a fascination for Nigerians. Because Nigerians use these assets to hedge against inflation and the depreciation of their fiat currency. However, eNaira is now seen as a symbol of the failing Nigerian economy, demonstrating people’s mistrust of the ruling elite.

One of the key factors that governments need to address is the lack of education on digital currencies. Central banks and governments should invest in educating people about CBDC.

Nigeria is the largest economy to have released a CBDC to date. e-Naira’s progress is therefore being monitored by over 100 countries planning to launch their own CBDCs. According to Josh Lipsky, senior director of the Atlantic Council’s Center for Geoeconomics, his CBDC project in Nigeria was important to the world.

The Central Bank of Nigeria has attracted nearly one million people to its CBDC project. The agency is currently targeting 8 million users by August next year.With a mobile penetration rate of 81%, eNaira could be recruited from the vast unbanked population.

Crypto Use Still High in Nigeria

Digital currencies have registered a notable decline over the past year. The speculative nature of these assets has attracted a great deal of attention in Nigeria.A few buy bitcoin Other cryptocurrencies to circumvent foreign currency restrictions imposed by central banks.

Nigeria ranks 11th, although the central bank prevents commercial banks from promoting cryptocurrency services.th Countries in the Crypto Adoption Index by Chainalysis. The increasing adoption of cryptocurrencies in Nigeria follows the fall of the country’s fiat currency. Naira has fallen almost six times since 2015. Inflation also raises concerns.

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