Enaira, Nigeria's Digital Currency of the Central Bank (CBDC) debut today

Enaira, Nigeria's Digital Currency of the Central Bank (CBDC) debut today

While the talks about the digital currencies of the central banks have been on the table for several years, only a few countries have actually taken the steps to issue one. After extensive research and development, Nigeria is finally ready to present the Enaira.

"Same Naira, more options"

In a press release, which was syndicated over mass media but published on the official website of the Nigerian Central Bank, Osita Nwanisobi, director of corporate communication, announced that Enaira is officially explained and introduced today on October 25th.

Under the slogan "same Naira, more options", the publication reveals that President Muhammadu Buhari will officially reveal the CBDC in the State House in Abuja.

The introduction of Enaira is the result of several years of research by the Central Bank of Nigeria in order to expand the limits of the payment system in order to make financial transactions easier and more seamless for all layers of society.

The digital currency should become active today after a “series of engagements with relevant interest groups, including banks, fintech operators, dealers ...”.

This makes Nigeria one of the first countries worldwide to introduce its own digital central bank currency.

Well or bad

One of the most common misunderstandings about a CBDC is that it is in a way related to cryptocurrencies, although they actually only have the fact that they are digital.

A CBDC in the form and shape that most countries try is nothing more than a digital version of your Fiat currency, in which the central bank still has complete control. In the truest sense of the word, it is not decentralized, since there is still a single authority that designs monetary policy and regulation in such a way that it has a direct effect on the status of the digital central bank currency.

Even if this could be seen as significant progress in terms of technological developments, it is unlikely that some of the growing concerns in the country will be concerned.

HowCrypto potato reported Last year, the country saw no lack of authoritarian actions on behalf of its government and law enforcement authorities. This may be a good explanation that Nigeria became A hub for Bitcoin trading and use.

Against this background, the introduction of Enaira could also be seen as a attempt by the government to suppress the possible future influence of cryptocurrencies.

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