Cryptocurrency is gradually but surely making its way into the mainstream financial system across the world and Nigeria seems to be the latest. The country’s Central Bank confirmed to be working with Bitt as a technical partner to develop the country’s first official digital currency dubbed ‘eNaira’.
The Central Bank announced these plans following the Nigerian government’s move to ban banks and financial institutions from dealing in crypto back in February.
According to the regulator’s Governor, Godwin Emefiele, eNaira will operate as a wallet that customers can use to hold existing funds in their bank accounts. In a statement on Monday, Mr Emefiele said that the currency is aimed at accelerating inclusion and enable cheaper and faster remittance inflows.
This comes at a time when other nations have also made similar moves by launching their own national digital currencies. In fact, the Barbados-based company Bitt has teamed up with other international regulators to create similar currencies. This includes Eastern Caribbean Currency Union’s “DCash”, the first digital cash issued by a currency union central bank. China had also been reported to be making its own cryptocurrency in 2019.
However, these national cryptocurrencies have been criticised by many as not true. This is mostly because they are under the control of national regulators, which is what crypto has been known to be against. As we all know, crypto was made to be a currency for the internet and for the people without having any authorities interfere with it.
So one would certainly beg to ask whether these national digital currencies should really be described as “crypto”. All in all, it is pleasing to see the blockchain-based currencies get recognition from financial regulators after years of condemnation.