Nigeria’s Federal High Court joins a growing list of regulators around the world that approve the deployment of a central bank digital currency (CBDC) as legal tender. The digital currency, dubbed eNaira, will be issued by the central bank and backed by its own eNaira wallet.
According to the Voice of Nigeria, the approval of the release of the CBDC in Nigeria was unveiled at a federal court hearing held on October 2 under the leadership of Judge Abayomi Taiwo. The official eNaira website says the digital version of Nigerian Naira will be available everywhere, stating that “anyone can keep it.”
As Cointelegraph previously reported, the launch of the Nigerian CBDC was timed to coincide with the 61st anniversary of the country’s independence. While eNaira will continue to operate alongside its fiat counterpart, it is being marketed as a faster, cheaper and more secure option for money transactions.
Importantly, the move to digital naira also coincides with the fall in the value of the national fiat currency, which is currently at its lowest level since 2003.
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.
Supporting data from Chainalysis suggests that peer-to-peer platforms, banking restrictions and fear of inflation have all contributed to a growing market in Africa. As a result, the region continues to attract investment, the most recent of which has led to $ 15M Series A funding for the Yellow Card cryptocurrency exchange.
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