IMF Lauds eNaira
Nigeria introduced the eNaira in October 2021, marking a historic first in the field of digital currencies. The International Monetary Fund believes Nigeria made a brave decision even if it hasn’t been adopted as much as they had hoped. Nigeria made progress, but there is still space for improvement, according to the finance agency’s first-year evaluation of the country’s digital currency.
Nigeria was the first nation in Africa and the second nation after the Bahamas to establish a CBDC. At a time when nearly 100 central banks are investigating digital currencies, the eNaira has developed into a global case study for CBDCs.
IMF delved into eNaira’s design, functionalities, challenges, risks, and opportunities. On design, it noted that while using a blockchain for the currency makes it less prone to hacking and eliminates a single point of failure, it poses “technical limitations in the speed of processing and sealing a block.”
(With inputs from Shikha Singh)
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