• In order to prevent the general public from using alternative crypto currencies, the Central bank of Nigeria upgraded the eNaira their national digital currency. Nigeria seems to be eager to promote eNaira while imposing severe restrictions on cryptocurrencies. The legislative direction has already been monitored by the UN, which reported that the harsh restrictions are suppressing the African nation’s fintech sector. Local politicians have also criticised the Central Bank head.

A new @cenbank governor is needed. Under a competent administration, I am available to consult free for #eNaira. We can show you the changes and not just tell you how to strengthen Naira. #AnotherContribution #StableCoin pic.twitter.com/bzo1SEEVbK

— SEGA L’éveilleur® (@segalink) May 10, 2022

The Central bank’s spokesperson, Bariboloka Koyor, emphasized the importance of early adoption. Koyor said that the only means to get financial aid from local governments will be through e-Naira once it is operational in the country. Research last month also revealed that the e-Naira was ranked the highest in terms of CBDC development around the globe, surpassing those from South Korea, China and the Bahamas.

Nigeria’s e-Naira has been ranked as the most developed Central Bank Digital Currency (CBDC) in the world after beating out Bahamas, China, South Korea and other countries to lead the top 10 rank.So, don’t be bitter about E-Naira o! pic.twitter.com/Y0GnveL9Az

— Taiwo_Ajakaye (@dmightyangel) April 11, 2022

The Competition between CBDCs & Crypto Is Hot

Last year, the Nigerian government ran a pursuasive promotional campaign for the eNaira, led by the tagline “Same Nara, more possibilities.” However, the naira itself has plummeted by 209% in the last six years. This reality prompted a lot of Nigerians to take interest in cryptocurrency. A popular Nigerian crypto exchange announced that 33 million Nigerian citizens had traded or held cryptocurrencies as of the end of last month.

Ever since the eNaira’s launch in October last year, the rules on crypto trading have been tightened. The rules for crypto trading are being tightened at commercial banks. They must monitor the activity of their clients and inform government authorities if they detect any. As explained by the United Nations Secretary Generals and Organisation for Economic Co-operation and Development, this has caused serious damage to the IT industry, particularly fintech.

.@GodwinIEmefiele: #eNaira will speed up rate of Nigeria’s financial inclusion | TheCable https://t.co/x8mv4Ln8Mz pic.twitter.com/VDtUS0YVWJ

— TheCable (@thecableng) May 10, 2022

Expressing concern for young adults working in the technology sector, the report stated: “The restrictions on cryptocurrency transactions in Nigeria have crippled foreign direct investment in the fintech industry”.

To summarize, the CBDC doesn’t seem to be showing any signs of slowing down. Recent reports have shown that over 80% of central bankers are currently working to create their own digital currency. China was the first to realize this goal and offers digital yuan apps to its citizens in 23 different cities. Plans to grow further are also being made.

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