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Nigerians’ passion for crypto is stopping short at the eNaira

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Nigerian Central Bank Digital Currency (CBDC) It has not received the warm welcome expected from the crypto-savvy population.

according to According to a Bloomberg report, less than 0.5% of Nigeria’s 217 million people live in Using Government-Issued Digital Currencies — eNaira — One year after launch.

This is despite Nigeria being identified by Chainalysis Top African Countries for Crypto Adoption Ranked 11th in the world, a KuCoin report found that 35% of the Nigerian population between the ages of 18 and 60 owned or traded cryptocurrencies this year.

Bloomberg noted that Nigerians are confused by the lack of clear explanations from states that cracked down on cryptocurrencies last year.

In February 2021, the Central Bank of Nigeria will Banks Banned From Offering Services To Crypto Exchanges To cut fiat onramps and offramps.

Educating those who are generally wary of states and ruling elites is also a challenge for central banks, according to the report.

Moreover, the naira has been devalued about six times since 2015, and economists expect another 20% loss in value next year. His CBDC push could prove difficult for many, as the economy is further aggravated by burgeoning inflation. of citizens of that country.

According to Adesoji Solanke, director of Renaissance Capital, a Lagos-based emerging and frontier markets investment bank, “eNaira doesn’t address any of these fundamental use cases, so it’s an The low adoption rate is not surprising.”

The disappointing figures prompted the Central Bank of Nigeria to step up efforts to increase adoption, including offering a 5% discount to drivers and passengers of electric rickshaws on city streets, according to the report. has become

Related: Nigeria Becomes Most Crypto-Obsessed Country After April Crash

In August, Nigerian Central Bank Governor Godwin Emefiele announced that the eNaira project entered its second phase in August. Recruitment target of 8 million users.

At the time, he added, CBDC had around 840,000 downloads and around 270,000 active wallets. By August, there were around 200,000 transactions valued at Naira 4 billion. At the time, it was about $9.5 million.

According to the Atlantic Council’s CBDC Tracker, Nigeria is one of 11 countries with a full CBDC. deployed It is a central bank digital currency, with the remaining 10 in the Caribbean.