Less Than 0.5% Of Nigeria Population Is Leveraging eNaira

Almost a year after Nigeria became the first country to launch a central bank digital currency (CBDC), fresh data suggest a poor acceptance rate among people.

Despite the government’s efforts to promote the eNaira, Bloomberg reported on October 25 that fewer than 0.5% of the population is using the money.

Despite Nigeria being one of the top countries in terms of crypto adoption, the majority of individuals have expressed perplexity, stating that they do not comprehend the difference between a CBDC and cryptocurrencies such as Bitcoin (BTC).

In the aftermath of the weakening economy and local currency depreciation, most locals have resorted to cryptocurrencies as a hedge against inflation. However, they see the eNaira as a proxy for the country’s economic difficulties.

Additionally, locals have expressed worry about the government’s crackdown on cryptocurrency transactions while strongly pushing the eNaira.

According to experts, Nigeria’s eNaira adoption issues are typical of such nations, noting a lack of collaboration from commercial banks and mistargeted consumer marketing. At the same time, competition from existing mobile banking apps is making it difficult to market the CBDC.

When establishing the currency, Nigerian officials targeted the country’s 40 million unbanked citizens and the multibillion-dollar remittance business. Furthermore, the government has permitted unbanked Nigerians to register accounts and use the eNaira using the mobile USSD code since August.

Overall, Nigeria has emerged as the country of choice for other jurisdictions interested in establishing a CBDC. Notably, digital currency stands out as a viable solution for authorities seeking to restrict the expansion of private cryptocurrencies.

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