Nigerian Federal High Court Approves Digital Currency Launch

JAKARTA - Nigeria's Federal High Court has joined a growing list of regulators worldwide to approve the launch of a central bank digital currency (CBDC) as legal tender. Named eNaira, the digital currency will be issued by a central bank and backed by a self-made eNaira wallet.

The approval of Nigeria's CBDC issuance came to light in a federal court hearing held on October 2 presided over by Judge Taiwo Abayomi Taiwo, according to a report by Voice of Nigeria. The official eNaira website says that a digital version of the Nigerian naira will be universally available, stating "anyone can hold it."

As previously reported by Cointelegraph, the launch of the Nigerian CBDC is dedicated to marking the country's 61st Independence Day. While eNaira will continue to circulate with its fiat partners, eNaira is marketed as a faster, cheaper and safer option for monetary transactions.

It is important to note that the move to introduce the digital naira also coincided with a fall in the value of the national fiat currency, which is currently at its lowest point since 2003.

A recent Cointelegraph report shows that Kenya, South Africa, Nigeria, and Tanzania have experienced the highest crypto adoption among African countries, resulting in 1200% market growth between July 2020 and June 2021.

Supporting data from Chainalysis shows that peer-to-peer platforms, banking restrictions, and fears of inflation have contributed to a growing market in Africa. As a result, the region continues to attract investment, with the latest leading to a US$15 million Series A funding round for the Yellow Card crypto exchange.