Nigeria, through its apex bank, Central Bank of Nigeria in a publication dated 30th August 2021, announced that they will now partner with Bitt as a technical partner in their bid to launch their own cryptocurrency which they termed ‘eNaira’.
Recall that in February this same year, the CBN and Federal Government instructed all financial institutions to discontinue all forms of relationship with any crypto-trading entity – individual or corporate. Defaulters were ‘ratted out’ by their banks and many accounts were closed as a result.
However, the CBN has now announced that it will launch its own cryptocurrency later this year – 2021. The CBN governor further explained that the eNaira would serve as a wallet where customers can warehouse their crypto-funds. After successfully ousting crypto from the Nigerian financial sphere, the CBN governor said that this development will help with financial inclusion and enable cheaper remittance inflows from diaspora.
“…benefits of the Central Bank Digital Currency (CBDC) to include increased cross-border trade, accelerated financial inclusion, cheaper and faster remittance inflows, easier targeted social interventions, as well as improvements in monetary policy effectiveness, payment systems efficiency, and tax collection”
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Despite the aim to make the eNaira the center of financial inclusion and a channel for international inward remittances, industry watchers have posited that the eNaira may not have any major positive effect on the entire outlook of the Nigerian economy.
What’s the difference between Naira and eNaira?
Interestingly, industry watchers have also suggested that the eNaira do the exact same thing the real fiat currency – Naira does. The difference between Naira and eNaira is that the Naira is physical while the eNaira is virtual and digital. Nothing else.
In the same publication, the CBN governor named Bitt Inc. as their technical partner and financial advisers in a bid to enlist eNaira in the cryptocurrency union central bank.
Besides this development, we have word that Honduras now has the world’s first crypto-ATM “la bitcoinera” in the office tower of TGU Consulting Group. This is coming off the back of several major pushes from world renowned stakeholders to spur demand for cryptocurrency.