Reasons Why Nigeria Central Bank Digital Currency (eNaira) will Succeed PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Reasons Why Nigeria Central Bank Digital Currency (eNaira) will Succeed

Time Stamp: May 13, 2022 10:30 AM

Reasons-Why-Nigeria-Central-Bank-Digital-Currency-eNaira-will-Succeed.

In recent times, there had been a clamor in different sectors in cryptocurrencies for the need that countries to launch their own version of Central Bank Digital Currency (CBDC). Nigeria is one of the countries that were in the news due to the report that the Central Bank of Nigeria wants the Central Bank Digital Currency of the country called eNaira to be adopted in payment of utilities. Some of the reasons why eNaira is going to succeed are: Number of cryptocurrency traders in Nigeria Number of users that had downloaded the app Number of merchants that uses it Use cases of eNaira Number of cryptocurrency traders in Nigeria According to a recent report released by the Kucoin exchange in April 2022, there are over 33 million traders in cryptocurrencies in Nigeria in the past six months. In cryptocurrency, the higher the number the better. This is over 15% of the present population of the country which is estimated to be 216.7 million. Number of users that had downloaded the app Of the things to note in checking how acceptable an application is, is to check for the number of downloads made. Nigeria’s Central Bank Digital Currency eNaira has over 756,000 downloads since its launch on October 25th, 2021 according to the Managing Director of Guaranty Trust Bank, Mariam Olusanya. This shows that there is a lot of interest in the currency by many users. Number of merchants that registered Nigeria is one of the countries in Africa with booming fintech companies. Presently, there are over 2800 merchants’ wallet downloads. This shows the growing number of businesses that are willing or had adopted it. The high inflation in the country Statistics have it that the value of Nigeria’s inflation rate is 15.92% in March 2022. eNaira gives users an avenue to preserve the value of their money irrespective of the effect of inflation on the Naira, which has made it lose over 200% to the United States Dollar within 7 years. Use cases in Nigeria Statistics have it that less than 10% of users of eNaira trade it on the peer-to-peer market, while over 80% is Bank to individual transactions. With the announcement that it would soon be used to settle utility bills, the demand could surge soon. Conclusion eNaira being the first Central Bank-backed Digital Currency in Africa is bound to succeed because of the reasons above.

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