Africa’s largest economy, Nigeria, is set to launch its eNaira digital currency on October 1 while Ghana begins a trial of the e-Cedi from this month.
The central banks of both countries have partnered with foreign financial companies to create a digital version of their currencies, joining the train of countries around the world exploring the new initiative.
Despite a ban on banks’ involvement in crypto currency transactions, Nigeria has continued to experience a boom in crypto currency as many people seek ways to escape the weakening naira and offset high cost of living as well as tackle unemployment in Africa’s most populous country.
Following the growth of digital currency, crypto currency and privately issued stable coins,banks are exploring ways to create virtual money as legal tender which will only be for transactionary purposes.
The new eNaira will be issued by the CBN as legal tender like the current naira and will operate on the Hyperledger Fabric Blockchain. It will also follow the official exchange rate.Customers will be able to download the eNaira app and fund their wallet using existing bank accounts from October
Meanwhile, the Central Bank of Nigeria through its Director, Payment System Management, Mr Musa Jimoh, has said the e-naira which is set to launch on October 1, 2021, is a legal tender equal to the value of the naira and thus must be accepted as a form of payment by all merchants and business outlets.