CBN, the Central Bank of Nigeria, has announced to refrain from using the cryptocurrency on the 5th of February. This brings a drastic change in the Nigerian economy. On Monday, with the presence of government officials, E-naira launches took place in the capital, Abuja.
According to the Nigerian president, the digital money system can boost the gross domestic product by $29billion. Not only this, the economic condition and monetary activities of the country will be improved.
The central bank reported that digital currency would bring a noticeable and productive change in trade. As per the rough estimation, the number of customers is increasing, and $1.2 million has been generated since the launch.
In the last few years, the concept of digital currency has been increasing in Nigeria. This country is becoming one of the leading global market trends. Muhammadu Buhari claimed that the launch of this currency would help fight inflation.
Digital Currency and its Benefits:
The technological aspects are different, whether it’s about cryptocurrency or any other currency. Initially, people need to learn the use of e-naira to get the most of it. Also, there is an application available for the benefit of citizens. Thus, it makes the process of monitoring regular transactions more convenient.
- It will boost the remittances procedures.
- No need for any intermediary parties.
- A way of faster payments and clearance.
- This promotes affordable international transfers.
- The secure payment method with more features.
- It gives you the ability to have 24/7 access options.
The use of digital currency has the ability to make the financial system more robust. Also, offering the fastest ways to support the economy.
More About E-Naira and Physical Naiara:
The exchange value of the eNaira and physical naira is the same. Prominently, the difference lies in the digital and non-digital existence, as the physical is tangible. On the other hand, eNaira is offering the best way to complete the financial transaction without any hassle.
However, the central bank has made efforts to stabilize the physical naira, but the weakness potential is 5.6% reported. Therefore, eNaira will help in maintaining the value by giving the users a low-cost option to facilitate daily transactions.
Cryptocurrency Vs. CBDC:
CBDCs are national currency. It is centralized, and crypto is the decentralized one. Also, central bank digital currency is legal tender which the central bank issues. Cryptocurrency will work on the anonymity system in the near future. CBDCs will strengthen the economic condition in the near future.
Future of Digital Currency in Nigeria:
According to different potential resources, the citizens of Nigeria will understand the use of eNiara very soon. In the coming years, the use of digital currency will be at its peak. By 2050, people will be completely switching to the most advanced option of payments to overcome the expenses and cost. Although due to the lack of awareness of advancement, there will be some initial complications. To make the eNaira project successful, Nigerians have to implement it.