Africa’s largest economy, Nigeria has launched a digital currency called eNaira to help drive economic growth and also help the West African country advance in plans to move towards a cashless economy as global economy evolves. The currency is said to be the equivalent of the current Naira, control by the central bank.
Speaking at the launching of the currency, President Muhammadu Buhari said the decision was informed by the global decline in the use of cash for transactions and the fast-growing demand for digital currency as further triggered by the pandemic.
“This trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new digital economy. Alongside these developments, businesses, households, and other economic agents have sought new means of making payments in the new circumstances,” he said.
President Buhari further said that, the currency “can help move many more people and businesses from the informal into the formal sector, thereby increasing the tax base of the country;” he added that, “we have become the first country in Africa and one of the first in the world to introduce a digital currency to our citizens.”
According to the regulatory body of the currency, the Nigerian Central Bank, eNaira “enables households and businesses to make fast, efficient, and reliable payments, while benefiting from a resilient, innovative, inclusive, and competitive payment system.”
The Central Bank revealed that, the eNaira will operate on a Hyperledger Fabric Blockchain which will make it earlier for people to transact using their bank accounts linked to their wallets on the eNaira app.