Nigeria’s eNaira Beats US in CBDC Race Amid Severe Fiat Shortages

Nigeria Limits Cash Withdrawals to Boost CBDC Adoption
  1. Nigeria’s eNaira gains popularity as fiat shortages increase.
  2. eNaira sees 63% increase in transaction value.
  3. CBDC wallets increase twelvefold, reflecting eNaira’s potential to transform Nigeria’s economy.

The United States may still be debating the implementation of a CBDC, but Nigeria’s eNaira is gaining popularity as the country faces severe fiat shortages. The Central Bank’s decision to replace older bank notes with larger denominations in response to rising inflation has resulted in a severe cash crunch. While developing countries were among the first to recognize the need for a CBDC to revitalize their fiat systems, the concept has yet to materialize.

The scarcity of physical cash has pushed Nigerians towards the eNaira, which saw a 63% increase in transaction value to 22 billion nairas ($47.7 million), according to a Bloomberg report. With cash accounting for 90% of all transactions, the eNaira’s growing popularity is a welcome development.

The Central Bank of Nigeria’s Governor, Godwin Emefiele, also reported that the total number of CBDC wallets had increased more than twelvefold since October 2022, currently standing at 13 million. This surge in adoption reflects the eNaira’s potential to transform Nigeria’s economy, particularly by increasing financial inclusion and reducing reliance on physical cash.

As Nigeria leads the way in CBDC adoption, other countries may take notice and follow suit. The eNaira’s success highlights the importance of developing robust digital payment systems that can support a country’s financial needs, particularly during times of economic instability.

In other news, the cryptocurrency XRP has awoken from its slumber, as its price surges to $0.45 in an unexpected manner. This represents a 24-hour increase of 15.3% and a 7-day increase of 21.9%, respectively.

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José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.