One year after the Central Bank of Nigeria (CBN) launched its digital currency, eNaira, the currency has not gained traction.
Less than one per cent of the population is said to be using the local digital currency.
According to a Bloomberg Report at the weekend, the acceptance of Africa’s first Central Bank Digital Currency (CBDC) has been very low despite the huge promotion and incentives.
Contrary to the estimation by the CBN on the level of local acceptance of the digital currency, “the eNaira has been a massive failure,” Bloomberg says.
The report expressed surprise at the low level of eNaira adoption given that “Nigeria has one of the highest Bitcoin adoption rates in the world—ranking 11th among all countries”.
Nick Giambruno of Financial Underground said the the Federal Government “figured Nigerians wouldn’t be able to differentiate between Bitcoin and the eNaira – they are both digital currencies, after all”.
Bloomberg however reported that “Nigerians’ passion for cryptocurrencies doesn’t extend to the apex bank offering.”
It also said that Nigerians view the eNaira as “a symbol of distrust in the ruling elite” and that the people view the government as “hostile to them and therefore have no interest in anything it introduces.”
