The Central Bank of Nigeria has referenced a study by Ripple Labs that suggests 85% of payment leaders in 22 countries anticipate the launch of a central bank digital currency (CBDC) within the next four years. This supports the bank’s findings on CBDCs in a recent report. By 2022, there were already 100 CBDCs in the research or development stage, with Nigeria’s eNaira and the Bahamian sand dollar being notable launches. However, Nigerians have been slower to adopt the eNaira compared to global cryptocurrencies.
Ripple Labs Research Supports CBDCs
The Central Bank of Nigeria cited a Ripple study from 2020 that showed a majority of payment leaders at financial institutions expected their country to launch a CBDC within the next four years. This strengthens the case for CBDCs as an alternative means of transactions that can improve financial inclusion and monetary policy transmission.
Nigeria’s Adoption of Cryptocurrencies
Despite slow adoption of the eNaira, Nigerians have been quick to embrace global cryptocurrencies like Bitcoin, Ethereum, Binance Coin, and Ripple. This is driven by Nigeria’s young and tech-savvy population, who are eager to adopt cryptocurrencies amidst inflation challenges. In fact, Nigeria ranks second on Chainalysis’ Global Crypto Adoption Index for 2023.
Unlocking Nigeria’s Economic Potential
Cryptocurrencies could play a key role in unleashing Nigeria’s full economic potential. As the largest economy in Africa and with a growing population, Nigeria is on track to become the fifth-largest economy globally by 2075. Embracing blockchain technology and cryptocurrencies can help drive economic growth and financial inclusion in the country.
Hot Take: Cryptocurrency Adoption Surges in Nigeria
Nigeria’s young and tech-savvy population has embraced cryptocurrencies amidst inflation challenges and a slow adoption of the eNaira. This has propelled Nigeria to become the second-ranked country in terms of global crypto adoption. With the potential for CBDCs and the growing popularity of cryptocurrencies, Nigeria has an opportunity to unlock its full economic potential and become a major player in the global economy.
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