Nigeria’s Federal Supreme Court has joined a growing list of regulators around the world that have approved the launch of the Central Bank Digital Currency (CBDC) as a legal tender. A digital currency called eNaira will be issued by the central bank, and the local wallet eNaira will support it.
The approval of the CBDC release in Nigeria was announced at a federal court hearing on October 2, chaired by Judge Taiwo Abayomi Taiwo, according to the Voice of Nigeria. The official eNaira website states that the digital version of Nigerian Naira will be available worldwide, while noting that “anyone can keep it.”
As Cointelegraph previously reported, the launch of the Nigerian CBDC is timed to coincide with the country’s 61st Independence Day. Although eNaira will continue to trade with its cash partner, it will be marketed as a faster, cheaper and more secure option for cash transactions.
More importantly, the transition to digital naira also coincides with the devaluation of the country’s fiat currency, which is currently at its lowest level since 2003.
Related topic: Africa Crypto Market grows over 1200% since 2020: Sequence analysis
A recent report from Cointelegraph showed that Kenya, South Africa, Nigeria and Tanzania experienced the highest adoption rates for cryptocurrencies among African countries, driving the market up 1200% between July 2020 and June 2021.
Confirmatory data from Chainalysis indicate P2P platforms, banking restrictions and fears of inflation have strengthened the African market. As a result, the region continues to attract investment, the latest of which has resulted in $ 15 million in Series A financing for the Yellow Card cryptocurrency exchange.