Nigeria Becomes First In Africa To Roll Out Digital Currency

Nigeria has become the first country in Africa to roll out a digital currency in a move that is likely to shift how most African governments view digital currency. Nigeria says the move is to cut transaction costs and boost the economy.

The currency will be known as eNaira. It ironically comes after the Central Bank of Nigeria barred banks and financial institutions from transacting or operating in any form of cryptocurrency because of the “threat they posed.”

Nigeria is the largest cryptocurrency economy in Africa. Many Nigerians have been trading and transacting in Bitcoins and other cryptocurrencies. Concerns had been raised that the country was losing a lot of foreign revenue.

“Nigeria has become the first country in Africa, and one of the first in the world to introduce a digital currency to her citizens. The adoption of the central bank digital currency will increase GDP by USD 29 billion,” said President Muhammadu Buhari.

Upon its launch, the eNaira platform received more than 2.5 million daily visits from Nigerians. 33 banks in the country have already integrated it. So far, 500 million Naira (1.2 million USD) have successfully been minted.

Kenya is still in the process of carrying out “research” to see if the country needs a cryptocurrency and the effects it comes with. The Central Bank of Kenya has joined seven other countries in carrying out the research.

Data from the Absa Financial Index 2021 shows that the Central Bank of Kenya (CBK) is currently researching the benefits of cryptocurrency in enhancing payments efficiency.

Other countries on the list include banking regulators in Eswatini, Ghana, Mauritius, Morocco, Rwanda, Nigeria, and South Africa.

The exploration of the use of digital currencies is a sign of good hope for the cryptocurrency market in Kenya, especially since the regulator has been slow in supporting its use.

For a long time, there have been perpetual debates surrounding regulation development despite the country experiencing a steady growth in the market.