The enaira, nigeria’s cbdc, is designed to advance financial inclusion, enhance payment system efficiency, and foster economic development. Even after various government promotions, nigerians are wary of the enaira blockchain and refuse to use it. after the government banned cryptocurrencies in nigeria to “protect” its population from volatile price swings and dangerous scams, the government implementing its own cryptocurrency backed cbdc is a failure of branding and mixed.
Five observations on nigeria’s central bank digital currency. the central bank of nigeria (cbn) officially launched the “ enaira”—a central bank digital currency (cbdc)—on october 25, 2021. this is the second cbdc fully open to the public after the bahamas. other countries and regions, such as china and the eastern caribbean currency. The enaira is a non interest bearing cbdc that maintains parity with the naira. designed by bitt inc., it runs on the hyperledger fabric blockchain — which is private and permissioned — under the central bank of nigeria (cbn). this means that the enaira runs on an intermediated architecture rather than on a public blockchain. Enaira. enaira is a central bank digital currency (cbdc) backed by law, the full sovereignty of nigeria, issued by the central bank of nigeria as a legal tender. it is the digital form of the naira and is used just like cash. the enaira wallet is a digital storage that holds the enaira. the enaira wallet is required to access, hold and use enaira. This paper reflects on the first year of the enaira—the first cbdc in africa. despite the laudable undisrupted operation for the first full year, the cbdc project has not yet moved beyond the initial wave of limited adoption. network effects suggest the initial low adoption spell will require a coordinated policy drive to break it. the enaira’s potential in financial inclusion requires a.
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