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Nigeria’s president to official unveil the eNaira

By:
on Oct 25, 2021
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  • The Central Bank of Nigeria has announced that the country's president will officially launch the eNaira.
  • The eNaira's launch had earlier been set on October 1 before being postponed.
  • Following the launch, Nigeria will be the first African country to launch a CBDC.

Nigeria has in the past shown a negative stand towards cryptocurrencies. However, the recent announcement about the eNaira CBDC shows that the country is becoming more open towards cryptocurrencies.

The President of Nigeria, Muhammadu Buhari, will officially launch the highly awaited eNaira on Monday, October 25. Once this central bank digital currency is launched, Nigeria will be the first African country to have its own digital currency.

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Nigeria to Finally Launches CBDC

The launch of the eNaira CBDC has previously been postponed by the Nigerian central bank. The CBDC launch was originally set for October 1, when the country celebrates its 61st Independence day.

However, the CBDC failed to roll out on this day as earlier promised. Instead, the Central Bank released a paper dubbed “The Design Paper for the E-naira.” The paper illustrated the readiness of the central bank to issue the CBDC and its commitment to effecting this launch.

The Central Bank further stated that its failure to launch the CBDC on the planned date was to make sure it got everything right for the rollout. The authority stated that ensuring all factors are considered would play a role in ensuring the project’s success.

The bank stated,

While the launch of the e-Naira is an important event, it is one milestone on a long journey. The e-Naira is a process, not a single step. Over time, the CBN believes the robust ecosystems that will be built on the e-Naira platform will ensure Nigeria and Nigerians receive all the benefits from the e-Naira.

Crypto regulations in Nigeria

Nigeria is among the countries that banned Bitcoin and other cryptocurrencies. The country’s crackdown on cryptocurrencies started during the first quarter of 2021. Regulators banned financial institutions from dealing in cryptocurrencies and threatened them with sanctions.

However, despite the harsh regulations, crypto transactions in Nigeria continued to soar. Crypto adoption in the country increased by around 17% following the ban, showing that cryptocurrencies had become favourable towards Nigerians. During the third quarter of 2021, the Central bank announced plans to build a virtual currency.

The launch of the eNaira could be a sign that the country is relaxing its harsh stand against cryptocurrencies.