Crptocurrency: Two African countries soon launch their own digital currency

Nigeria and Ghana are now preparing to introduce their own digital currency. The central banks of both countries have partnered with foreign financial tech companies, under which they will create a digital version of their currency.

Given the popularity of cryptocurrencies in West African countries, two big African economies like Nigeria and Ghana are now preparing to introduce their own digital currency. The central banks of both countries have partnered with foreign financial tech companies, under which they will create a digital version of their currency.

Nigeria is Africa’s largest economy, this country is bringing the digital version of its currency Naira (e-Naira) on this 1 October. At the same time, Ghana is starting the trial of e-Cedi, the digital version of its currency, from this month.

Banks in Nigeria are banned from transacting in cryptocurrencies, yet there has been an increase in the popularity of crypto investments, as people are increasingly relying on it to cover the depreciating currency, unemployment and costly living expenses.

Huh. Iodeji Ebo, Head of Retail Investments, Lagos-based investment firm Chapel Hill Denham, said that “Nigerians are investing in crypto keeping the store value high, the funds they want to take out of the country.”

Given the growth of digital payments, cryptocurrencies and privately issued stablecoins, central banks in many countries around the world are looking for ways to make virtual money a legal tender.

Digital currencies (CBDCs) and cryptocurrencies issued with the backing of central banks are both virtual money, but the difference is that CBDCs are issued and have authority by central banks, but cryptocurrencies are outside government control. .

According to the CBDC tracker of American think tank Atlantic Council, China has become the first country to bring trial of its digital currency only last year. Since then there are five more countries that have issued their own digitized currency.

There are also countries such as Kenya, South Africa and Rwanda that are considering alternatives to CBDCs, but there are countries such as Nigeria and Ghana, which have come a long way in this process.

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