• Contact
Saturday, September 23, 2023
  • Login
The African Business - News About African business
  • Home
  • EconomyNew
    Nigeria finance minister blames Naira’s dive on overdue payments

    Nigeria finance minister blames Naira’s dive on overdue payments

    Angola Oil & Gas (AOG) 2023 Explores Mobilizing Capital for Angola’s Infrastructure

    Angola Oil & Gas (AOG) 2023 Explores Mobilizing Capital for Angola’s Infrastructure

    Timeline: Nigeria's electricity grid collapsed 46 times from 2017 to 2023

    Timeline: Nigeria’s electricity grid collapsed 46 times from 2017 to 2023

    Trending Tags

  • Business
    Virgin Active to expand office space and meeting rooms in gyms

    Virgin Active to expand office space and meeting rooms in gyms

    Dangote, Bua show grit amid global sugar crises

    Dangote, Bua show grit amid global sugar crises

    800 million+ carats of diamonds in Angola reserves

    800 million+ carats of diamonds in Angola reserves

    Hindenburg 2.0? George Soros-backed group plans 'expose' on Indian firms: Report

    Hindenburg 2.0? George Soros-backed group plans ‘expose’ on Indian firms: Report

    Viktor Bout still has his eye on Africa

    Viktor Bout still has his eye on Africa

    SADC countries may benefit from ANGOSAT 2

    SADC countries may benefit from ANGOSAT 2

    US puts $235m in startup making low-emission jets

    US puts $235m in startup making low-emission jets

    Amazon opens its first African AWS Skills Center in South Africa

    Amazon opens its first African AWS Skills Center in South Africa

    Kenya: BasiGo launches its new “E9 Kubwa” electric bus model

    Kenya: BasiGo launches its new “E9 Kubwa” electric bus model

  • Finance
    Nigeria asks banks to save forex gains amid currency risks

    Nigeria asks banks to save forex gains amid currency risks

    PayPal finally launches Apple Pay support for its credit and debit cards

    PayPal finally launches Apple Pay support for its credit and debit cards

    TLG Capital launches ₦2.25B collateralized credit facility for OnePipe

    TLG Capital launches ₦2.25B collateralized credit facility for OnePipe

    Silicon Valley Bank: Global bank stocks slump despite Biden reassurances

    Silicon Valley Bank: Global bank stocks slump despite Biden reassurances

    [Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years

    [Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years

    Digital banking revolution can help SA banks regain their customers’ love, says BCG

    Digital banking revolution can help SA banks regain their customers’ love, says BCG

    Nigeria launches payments card program to rival Visa and Mastercard

    Nigeria launches payments card program to rival Visa and Mastercard

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

  • Opinion
  • Lifestyle
  • Sports
  • Green Economy
No Result
View All Result
  • Home
  • EconomyNew
    Nigeria finance minister blames Naira’s dive on overdue payments

    Nigeria finance minister blames Naira’s dive on overdue payments

    Angola Oil & Gas (AOG) 2023 Explores Mobilizing Capital for Angola’s Infrastructure

    Angola Oil & Gas (AOG) 2023 Explores Mobilizing Capital for Angola’s Infrastructure

    Timeline: Nigeria's electricity grid collapsed 46 times from 2017 to 2023

    Timeline: Nigeria’s electricity grid collapsed 46 times from 2017 to 2023

    Trending Tags

  • Business
    Virgin Active to expand office space and meeting rooms in gyms

    Virgin Active to expand office space and meeting rooms in gyms

    Dangote, Bua show grit amid global sugar crises

    Dangote, Bua show grit amid global sugar crises

    800 million+ carats of diamonds in Angola reserves

    800 million+ carats of diamonds in Angola reserves

    Hindenburg 2.0? George Soros-backed group plans 'expose' on Indian firms: Report

    Hindenburg 2.0? George Soros-backed group plans ‘expose’ on Indian firms: Report

    Viktor Bout still has his eye on Africa

    Viktor Bout still has his eye on Africa

    SADC countries may benefit from ANGOSAT 2

    SADC countries may benefit from ANGOSAT 2

    US puts $235m in startup making low-emission jets

    US puts $235m in startup making low-emission jets

    Amazon opens its first African AWS Skills Center in South Africa

    Amazon opens its first African AWS Skills Center in South Africa

    Kenya: BasiGo launches its new “E9 Kubwa” electric bus model

    Kenya: BasiGo launches its new “E9 Kubwa” electric bus model

  • Finance
    Nigeria asks banks to save forex gains amid currency risks

    Nigeria asks banks to save forex gains amid currency risks

    PayPal finally launches Apple Pay support for its credit and debit cards

    PayPal finally launches Apple Pay support for its credit and debit cards

    TLG Capital launches ₦2.25B collateralized credit facility for OnePipe

    TLG Capital launches ₦2.25B collateralized credit facility for OnePipe

    Silicon Valley Bank: Global bank stocks slump despite Biden reassurances

    Silicon Valley Bank: Global bank stocks slump despite Biden reassurances

    [Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years

    [Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years

    Digital banking revolution can help SA banks regain their customers’ love, says BCG

    Digital banking revolution can help SA banks regain their customers’ love, says BCG

    Nigeria launches payments card program to rival Visa and Mastercard

    Nigeria launches payments card program to rival Visa and Mastercard

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

  • Opinion
  • Lifestyle
  • Sports
  • Green Economy
No Result
View All Result
The African Business - News About African business
No Result
View All Result
Home Finance

Nigeria, Ghana sprint to join digital currency race

TAB by TAB
19/10/2021
in Finance
0
Nigeria, Ghana sprint to join digital currency race

A group of young people discuss the concept of central bank digital currency. Holographic futuristic screen with the inscription CBDC

0
SHARES
23
VIEWS
Share on FacebookShare on Twitter

Nigeria and Ghana are racing to adopt a central bank digital currency as they look to ride the wave of popularity of cryptocurrencies in West Africa’s two largest economies.

Central banks in both countries have partnered with foreign financial tech companies to create digital versions of their currencies, joining the global train of countries exploring the initiative.

Related posts

Nigeria asks banks to save forex gains amid currency risks

Nigeria asks banks to save forex gains amid currency risks

16/09/2023
4
PayPal finally launches Apple Pay support for its credit and debit cards

PayPal finally launches Apple Pay support for its credit and debit cards

09/09/2023
1

Nigeria, Africa’s largest economy, will launch its eNaira digital currency on October 1, while Ghana will trial e-Cedi from this month.

Nigeria has seen a boom of cryptocurrencies, despite a ban on banks making the transactions, as people look for ways to escape the weakening naira currency and offset high cost of living and unemployment in Africa’s most populous country.

“Nigerians are investing in cryptocurrency as a means of store value and to carry their funds outside the shores of the country,” said Ayodeji Ebo, head of retail investment at Lagos-based investment firm Chapel Hill Denham.

“eNaira will be for transactionary purposes.”

Central banks across the world are exploring ways to create virtual money as legal tender following the growth in digital payments, cryptocurrency and privately issued stablecoins.

Both so-called central bank-backed CBDCs and cryptocurrency are virtual money: CBDCs are issued and regulated by the central bank while the other is out of government control.

China became the first major economy to pilot a digital currency last year. Since then, five countries have launched digitised currencies, according to a CBDC tracker by American think-tank Atlantic Council.

Although some African countries such as Kenya, South Africa and Rwanda are exploring CBDCs, Nigeria and Ghana have already reached advanced stages.

Step by step

The Bank of Ghana is partnering with German firm Giesecke+Devrient (G+D) to pilot the e-Cedi. The scheme is part of a broader plan to digitise the country and its government.

G+D will provide the technology that will be tested in a trial phase with local banks, payment service providers, consumers and others.

Nigeria selected global financial technology company Bitt Inc. for its CBDC launch known as “Project Giant” after more than three years of research into the digital currency.

“The CBN will rely on the company’s tested and proven digital currency experience, which is already in circulation in several eastern Caribbean countries,” the Central Bank of Nigeria said.

The new eNaira will be issued by the CBN as legal tender like the current naira currency and will operate on the Hyperledger Fabric Blockchain. It will also follow the official exchange rate.

Starting from October 1, customers will be able to download the eNaira app and fund their mobile wallets using their existing bank accounts, according to CBN governor Godwin Emefiele.

Boom and concerns

Nigeria’s central bank has long worried about the impact of cryptocurrencies and stablecoins that are fast becoming popular among young and tech-savvy residents.

Young Nigerians continue to explore new ways to make money and store value in the face of double-digit joblessness and inflation as well as the collapse in value of the local naira.

Nigeria’s central bank earlier this year ordered lenders to stop facilitating cryptocurrency transactions over allegations they were being used for money laundering and terrorism financing.

In spite of the central bank ban, many Nigerians still skirt traditional sectors to use cryptocurrency for overseas transactions.

Emefiele says eNaira will benefit Nigeria’s economy in many ways, from cross-border trade to making remittance inflows more efficient.

Remittances fell to $17.2 billion last year, the lowest level since 2007.

Some of that was due to Covid-19 pandemic fallout, but observers say Nigerians abroad are moving away from official channels to cryptocurrency transactions seen as faster and more efficient.

Nigeria climbed two steps this year to rank sixth globally in crypto adoption, according to blockchain data platform Chainalysis.

Already, some analysts question the eNaira’s operating model with Nigeria already using a host of existing electronic payment channels, including internet banking and mobile apps.

“Digital currency is heavily dependent on smart devices,” said Joel Ogunsola, CEO of UK-based technology solutions company Prunedge.

“If you look at the number of people who have these devices in Nigeria, it almost looks like you are gunning for the same market.”

But the chief economist for Nigeria at PwC, Andrew Nevin, said the eNaira comes with the benefit of easier and lower transaction costs.

“The eNaira helps to reduce the cost of payment,” Nevin said. “That’s the point of deploying a larger technology, which is the basis for the central bank digital currency.”

Source : https://www.businessdailyafrica.com/bd/news/nigeria-ghana-sprint-to-join-digital-currency-race-3558406

Previous Post

Nigeria raises $4 billion Eurobond on healthy investor demand

Next Post

Tourists return to Egypt’s resorts after months of restrictions

Next Post

Tourists return to Egypt's resorts after months of restrictions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Grey List – South Africa and Nigeria placed under increased monitoring by FATF

Grey List – South Africa and Nigeria placed under increased monitoring by FATF

7 months ago
4
Reasons for South Africa to be positive heading into 2022: CEO

Reasons for South Africa to be positive heading into 2022: CEO

2 years ago
4
Top 5 oil-producing countries in Africa

Top 5 oil-producing countries in Africa

1 year ago
3
Egyptian steel tycoon Ahmed Ezz

Egyptian steel tycoon Ahmed Ezz gains $71 million in 21 days as Ezz Steel shares see double-digit surge

2 years ago
3

BROWSE BY CATEGORIES

  • Business
  • Economy
  • Finance
  • Green Economy
  • Lifestyle
  • Opinion
  • Sports
  • Uncategorized

Ads

Categories

  • Business
  • Economy
  • Finance
  • Green Economy
  • Lifestyle
  • Opinion
  • Sports
  • Uncategorized
The African Business - News About African business

We bring you the best Premium news about African Business.

Follow us on social media:

Recent News

  • Kenya seeks partnership with Apple
  • List of African countries and how much of their salaries they spend on iPhones
  • Nigeria finance minister blames Naira’s dive on overdue payments

Category

  • Business
  • Economy
  • Finance
  • Green Economy
  • Lifestyle
  • Opinion
  • Sports
  • Uncategorized

Legal Information

Terms and Conditions
Privacy Policy
Complaints Book

  • Contact

© 2021 The African Business

No Result
View All Result
  • Home
  • Economy
  • Business
  • Finance
  • Opinion
  • Lifestyle
  • Sports
  • Green Economy

© 2021 The African Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In