CBDC in Nigeria | eNaira | Central Bank Digital Currency | Launch

Nigeria CBDC and Blockchain Technology Crypto in Nigeria

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

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.

Rate article
Add a comment