ACR #13: This struggling digital currency seeks salvation
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Nigeria’s central bank digital currency, eNaira, is teetering on the brink of failure in its short existence. The central bank is now seeking a new technology partner to inject new life into the currency that hasn’t still found product-market fit.
A Bloomberg report said the Central Bank of Nigeria (CBN) is in talks to hire a new partner for the development of its digital currency. Per the report, the CBN wants to “develop its own software for the digital currency so that it can keep full control of the effort”. It’s discussing with R3, a new york-based technology firm, to build this technology.
What does this mean?
It’s been more than a year since the CBN launched the eNaira, making Nigeria the first African country to launch a CBDC, a digital currency built on a permissioned blockchain.
So far, 16 months after its celebrated launch, the eNaira still struggles for relevance. No one I know uses it or wants to.
Going by the stats released during its first anniversary in October 2022, it recorded 700,000 transactions worth ₦8 billion (about $10 million). Downloads of the eNaira wallet app is also less than 1 million. Not good!
As we’ve explained in a previous episode of this newsletter, the current implementation of the digital currency (targeting people with bank accounts) is just not solving any problem. There are already lots of digital wallets in the country serving people with bank accounts.
However, the CBN governor, Godwin Emefiele, has said that the next adoption phase would target about 8 million unbanked users. Most likely, this technical revamp is geared towards that goal.
Nigeria will have a new president in the coming days, and a new cabinet emerging could affect the post of the CBN governor, it’s hard to see how the plans of the apex bank work out.
What else?
Zambia tests technology for crypto regulation, says minister Mutati
The Bank of Zambia and the country’s securities regulator are collaborating on digital infrastructure and a policy framework for crypto.
South African Startup Momint Seeks to Boost Electricity Generation Using Blockchain-based Solution
South African blockchain startup, Momint, in partnership with the Sun Exchange, is offering a blockchain-powered solution aimed at allowing individuals to invest in solar power and subsequently sell it to institutions.
Chipper Cash Cuts Staff but Keeps Crypto Operations
Pan-African FinTech Chipper Cash has reportedly laid off more than a third of its staff
Product of the week
Binance Pay
Binance Pay is a contactless cryptocurrency payment technology designed by Binance. It allows users to pay for stuff with crypto. They support quite a number of local merchants in Africa, especially Nigeria. It doesn’t support a lot of big merchants yet, so it’s not as useful yet on the continent.
Personality Spotlight
Obinna Iwuno
Obinna Iwuno is a blockchain educator and community builder who is the founder of Crypto Bootcamp Community.
Also, he is the newly elected President of SiBAN (Stakeholders In Blockchain Technology Association of Nigeria), a self-regulation blockchain union in Nigeria.
What’s the meme?
What we are reading
Bitcoin Lightning Network growth is organic, coming from real-world adoption
That’s all for now. See you next week Monday!