The Federal Supreme Court of Nigeria joins a growing list of regulators around the world approving the introduction of a Central Bank Digital Currency (CBDC) as legal tender. The digital currency is called eNaira and it will be issued by the central bank and backed by a home-made eNaira wallet.
The permission to release a CBDC in Nigeria was revealed at a Federal Court hearing on October 2 presided over by Judge Taiwo Abayomi Taiwo, according to the Voice of Nigeria. The official website eNaira states that the digital version of the Nigerian naira will be available to the public and states that “anyone can keep it.”
As previously reported by Cointelegraph, the launch of the Nigerian CBDC is dedicated to the celebration of the 61st anniversary of the country’s independence. While eNaira will continue to work with its cash counterpart, it is being marketed as a faster, cheaper and safer alternative to cash transactions.
Importantly, the movement of the digital naira also coincides with a decline in the value of the country’s fiat currency, which is currently at its lowest level since 2003.
On this topic: The Cryptocurrency Market in Africa Has Grown Over 1200% Since 2020: Chain Analysis
A recent report from Cointelegraph shows that Kenya, South Africa, Nigeria and Tanzania have the highest cryptocurrency adoption rates among African countries, driving the market up 1200% between July 2020 and June 2021.
Supportive data from Chainalysis shows that peer-to-peer platforms, banking restrictions and inflation fears have boosted the market in Africa. As a result, the region continues to attract investments, the latest of which has led to $15 million in Series A funding for yellow card cryptocurrency.