What is Nigeria's digital currency "eNaira"?
Nigeria recently ended up being the first African country to introduce its own digital currency, "eNaira", joining the Bahamas and the Eastern Caribbean Reserve Bank.
What is digital currency ?
It is a new form of currency, it has a high degree of security, this currency is decentralized, so its trading does not require the presence of an intermediary like banks.
When trading, transactions are recorded in an encrypted manner in a digital storage system called “blockchain”, which is why they are called cryptocurrencies.
Why Nigeria launched its digital currency?
The Reserve Bank has already given several reasons for issuing “eNaira”, which are as follows:
-Establishing an effective and inclusive economic system.
-Assistance with expatriate remittances.
-Reduce the cost of handling cash.
-Supporting a flexible payment system in the collection of income tax.
-Enhancing the effectiveness of cross-border trade.
Is Nigeria ready for this step?
Nigeria can certainly succeed in this step, given the presence of modern technologies, and the possibility of dealing with it.
It is reported that the central bank will roll out eNaira via its cryptocurrency management system.