Nigeria, Africa's leading power, has officially launched its cryptocurrency, the eNaira.
This currency, available to all citizens, is issued by the country's central bank. It is equivalent to the national currency and is therefore fully exchangeable with the Naira. The government has stated that this virtual currency was launched to simplify the payment system and facilitate financial transactions within the country.
The use of the eNaira is governed by regulatory guidelines to prevent fraudulent activity. The National Central Bank is therefore calling on the country's financial institutions to take measures to ensure the effective and secure management of the virtual currency in the face of cyberattacks.
Although we are still in the early stages, the revolution has already begun. Just look at the trading volumes and global transaction volumes of cryptocurrencies, which have been growing steadily since 2015. For several years now, cryptocurrency projects have been gaining ground on the continent. After Ghana, which is expected to launch the E-Cedi soon, it is now Nigeria's turn to set its sights on virtual currency. But what opportunities are there for African countries?
Virtual currencies created by central banks are a response to the digital revolution and the development of Fintech around the world. They are also a measure put in place upstream to deal with the proliferation and unregulated development of virtual currencies around the world, while also reducing the dependence of central banks on commercial banks. Finally, these virtual currencies represent an opportunity to stimulate trade between countries.
Although some central banks are still skeptical about the potential of cryptocurrencies, others have chosen to take the plunge, such as Ghana and Nigeria.
In addition to the reluctance of stakeholders, there is another obstacle: digitization. The development of virtual currencies is still hampered by the digital divide that persists in many African countries, which are lagging behind in terms of digitization.