E-NAIRA- AN ADVANTAGE OR DISADVANTAGE TO THE ECONOMY?
E NAIRA AS A TOOL OF DIGITAL ECONOMY GROWTH IN NIGERIA
The excitement about the E-Naira Digital Currency is minimal across the country; despite the awareness by top commercial banks in Nigeria, it is being widely criticized following the ban on Cryptocurrency by the Central Bank of Naira. With the mixed reaction of Nigerians, I will be looking at E-naira being an advantage or disadvantage to the economy. The E-naira was seen by a few people as a good idea, but many asked if it was the right step to take following the ban on Cryptocurrency in the country.
E-Naira digital currency was launched on October 25, 2021; According to the report of restofworld.org published on November 19, 2021, it was seen as a game changer that will transform commerce in Nigeria being the first country in Africa to introduce digital currency across the continent. It was seen as the alternative to the ban of Cryptocurrency by the Central Bank of Nigeria; According to a report by imf.org published on November 16, 2021: E-Naira use blockchain technology such as Bitcoin and Ethereum, it can be stored in the digital wallet and can be used for electronic transaction and transfer across the world at no cost. Despite these features, the E naira is not seen as a national asset but a digital form of currency that draw its inspiration from the Physical currency but again we ask of what benefit is this to an economy with an inflation of 18% and a huge rise in the rate of unemployment. What will the invention of the E-Naira solve in scathing economy as Nigeria? A question that lingers on our minds each time we think of the invention and the controversy around it.
CBN instructed that Banks and Financial institution to close the account of individuals that is engaged in a crypto transaction as reported by premium times published in the month of September 2021. The directive from the Central Bank of Nigeria sparked a negative reaction among people in Nigeria, prompting them to ask if they could still buy bitcoin and engage in crypto transaction despite the directive from the Central Bank of Nigeria not to facilitate the crypto transaction. The Central Bank of Nigeria stated that it was uncomfortable with the crypto transactions and will continue to educate the masses to stop using digital assets to protect the financial sector from cyber criminals.
According to report by imf.org published on November 16, 2021: E-Naira use blockchain technology such as Bitcoin and Ethereum, it can be stored in a digital wallet and can be used for electronic transaction and transfer across the world at no cost. Despite these features, the E naira is not seen as a national asset but a digital form of currency that draws its inspiration from Physical currency, but again, we ask what benefit this is to an economy with an inflation of 18% and a huge rise in the rate of unemployment.
E NAIRA SOLVING AN ECONOMIC PROBLEM DESPITE THE BAN OF CRYPTO:
What will the invention of the E-Naira solve in a scathing economy as Nigeria? This a question that lingers on our minds each time we think of the invention and the controversy around it. CBN instructed that Banks and Financial institution to close the account of individuals that is engaged in the crypto transaction, as reported by premium times published in the month of September 2021.
The directive from the Central Bank of Nigeria sparked a negative reaction among people in Nigeria, prompting them to ask if they could still buy bitcoin and engage in crypto transactions despite the directive from the Central Bank of Nigeria not to facilitate the crypto transaction. The Central Bank of Nigeria stated that it was not comfortable with crypto transactions and it will continue to educate the masses to stop using digital assets to protect the financial sector from cyber criminals.
Cover photo Photo by Dignited
