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[Opinions] Why bitcoin and eNaira launched by PMB work in Nigeria despite differences

Despite their differences, both Bitcoin and eNaira can run in the Nigerian market according to Natalie Hartman, the Vice President, Marketing, of Bitt Inc, the company that build eNaira for the country.

Photo Credit: Google

President Muhammadu Buhari launched the country's new digital eNaira currency on Monday as Africa's biggest economy glimpsed to tap into the growing vogue of virtual money and cryptocurrencies. 

CBDC and cryptocurrency are foundationally very different assets. A CBDC is handed out by the central bank, is legal tender, and benefits from a high degree of safety.

Photo Credit: Google

Cryptocurrencies possess a very different set of attributes. Therefore, the two are not an insincere competition with one another, and can coexist, and probably complement each other.

Central bank-backed digital currencies, CBDCs and cryptocurrencies are virtual money. CBDCs are legal tender controlled by central banks while cryptos are out of government control.

Nigeria has seen booming interest in cryptocurrencies as people look for ways to avoid the weakening naira currency and combat high costs of living and unemployment in Africa's most populous country.

Photo Credit: Google

With its eNaira currency, Nigeria joined China and others who are using or piloting central bank-backed digital tenders as the global use of e-payment systems expands.

Five nations have begun CBDCs, with another 14, among them South Korea and Sweden are in the pilot stage, according to the Atlantic Council's CBDC tracking project.

Content created and supplied by: OGUNBAYODEjnr (via Opera News )

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