The rise of crypto currencies like Ethereum and Bitcoin, has influenced some contries to consider producing their own digital currencies and Nigeria has become one of such.
Following the barred of bank and financial institutions in Nigeria from facilitating any cryptocurrency outside the country, Nigeria is to launch its own cryptocurrency, ‘eNaira’, in partnership with a global fintech company, Bitt, as it’s technical partner.
The eNaira would operate as a wallet against which customers can hold existing funds in their bank account and will accelerate financial inclusion and enable cheaper and faster remittance inflows.
The eNaira will work as a digital version of the physical Naira. Its wallet is similar to a bank account and is created in the same way but, it will be a separate account that is not connected to an individual’s already existing bank account.It is expected to increase cross-border trade, which could have a positive impact on the Nigerian economy.
The Central Bank of Nigeria (CBN) plans to launch its the digital currency in October.
Image source: bbc.com