- FAQ: Central Bank Digital Currency (CBDC) and Cryptocurrency in Nigeria
- CBDC and eNaira
- Q: What is Nigeria’s CBDC called?
- Q: Is eNaira based on blockchain?
- Q: When was eNaira launched?
- Q: What are the main reasons for introducing eNaira?
- Q: What challenges does CBDC face in Nigeria?
- Cryptocurrency in Nigeria
- Q: Is cryptocurrency legal in Nigeria?
- Q: What is the Central Bank of Nigeria’s stance on cryptocurrency?
- Q: How significant is cryptocurrency in Nigeria’s economy?
- Global Context
- Q: Which countries have fully launched CBDCs?
- Q: What blockchain is commonly used for CBDCs?
- Q: How many countries are exploring CBDCs?
- Nigerian Currency
- Q: What is the central currency of Nigeria?
- Q: What happened to the Nigerian naira in 2023?
FAQ: Central Bank Digital Currency (CBDC) and Cryptocurrency in Nigeria
CBDC and eNaira
Q: What is Nigeria’s CBDC called?
A: Nigeria’s CBDC is called the eNaira. It is a central bank digital currency backed by law, issued by the Central Bank of Nigeria as legal tender.
Q: Is eNaira based on blockchain?
A: Yes, eNaira is built on blockchain technology. It’s Africa’s first Central Bank Digital Currency using this technology.
Q: When was eNaira launched?
A: The eNaira was launched in October 2021. Nigeria was the first country in Africa to roll out a central bank digital currency.
Q: What are the main reasons for introducing eNaira?
A: The main reasons were to promote financial inclusion, increase cross-border transactions, facilitate diaspora remittances, and complement existing payment systems.
Q: What challenges does CBDC face in Nigeria?
A: Some identified risks include digital illiteracy, increased propensity for cyber-attacks, data theft, and the changing role of banks in a full-fledged CBDC economy.
Cryptocurrency in Nigeria
Q: Is cryptocurrency legal in Nigeria?
A: Cryptocurrencies are not illegal in Nigeria, but firms must register in order to operate there.
Q: What is the Central Bank of Nigeria’s stance on cryptocurrency?
A: On December 22, 2023, CBN lifted the ban on cryptocurrency and directed all banks and other financial institutions to carry out cryptocurrency services.
Q: How significant is cryptocurrency in Nigeria’s economy?
A: Cryptocurrency transactions were equivalent to about 12% of Nigeria’s total GDP in the year to June 2023.
Global Context
Q: Which countries have fully launched CBDCs?
A: As of now, the Bahamas, Jamaica, and Nigeria have fully launched CBDCs.
Q: What blockchain is commonly used for CBDCs?
A: Ethereum is considered the most production-ready blockchain to support CBDC requirements in terms of scalability and privacy.
Q: How many countries are exploring CBDCs?
A: More than 100 countries are in the exploration stage of CBDCs.
Nigerian Currency
Q: What is the central currency of Nigeria?
A: The central currency of Nigeria is the naira (sign: ₦; code: NGN).
Q: What happened to the Nigerian naira in 2023?
A: The naira was devalued in June 2023 and again in January 2024 as part of an effort to unify official and unofficial exchange rates.
