Since its launch in October 2021, the eNaira has seen lackluster uptake, and the Central Bank of Nigeria is seeking to remedy this in its latest move.
The eNaira adoption has been lackluster, with the total transaction volume over the past year being just a fraction of the digital assets trading volume.
A commissioner for Nigeria’s securities regulator said that it’s trying to catch up with the United States in Bitcoin regulations and outlined where the central bank comes in.
The securities regulator has issued policies for ICO issuers, digital asset exchanges, custodians, VASPs, and when assets qualify as securities, but the central bank is still hostile.
The Central Bank of Nigeria said the upgrade makes onboarding easier, makes the wallet faster, and allows users to create a much wider range of payments.
The IMF says that eNaira could raise financial inclusion to meet the ambitious target of 95%, but says Nigeria must be vigilant as it poses several risks.
The Central Bank of Nigeria further said that $150,000 had been transacted on its app, with 78,000 merchants from 160 countries enrolling for payments.
The Central Bank of Nigeria froze two bank accounts of individuals and one business account that it claims have been trading digital currencies against its circular.
The Central Bank of Nigeria plans to mint and issue the CBDC while commercial banks will be in charge of distribution, with zero fees for P2P wallet transactions.
The Central Bank of Nigeria has moved to court to freeze the bank accounts of forex trading platforms, claiming they contribute to naira’s depreciation.
The West African country has been cracking down on digital currencies for months, but according to one report, it has been working on the digital naira all this while.