eNaira Hits $10 Million in Transactions as Nigeria’s Central Bank Aims for 10x Growth
Since the launch of eNaira in October 2021, only $10 million has been traded, which is a tiny fraction of the volume of digital asset transactions during this period.
Speaking at the eNaira Hackathon Grand Finals, Central Bank of Nigeria (CBN) Governor Godwin Emefiele revealed this digital currency did not hit the ground as expected.
Since its launch, the eNaira digital wallet has been downloaded 840,000 times, of which only around a third are actively using the wallet. These users made 200,000 transactions totaling 4 billion naira ($9.7 million). This translates to approximately one transaction per active wallet, proving that Nigerians do not use their digital wallets for day-to-day transactions.
Governor Emefiele believes the progress is remarkable since CBDC is a new product that users are still learning about. However, for context, in the first two months of this year alone, Nigerians transacted $128 billion through the Nigeria Instant Payment System (NIPS), an account-to-account interbank system that supports mobile and internet banking.
Encouraged by the results so far, the central bank is entering the second phase with eNaira, the governor revealed. In this phase, the focus will be on financial inclusion, and CBN will open the CBDC to those who do not have a bank account. Currently, only those with a bank account can open an eNaira wallet. This has hampered adoption as only around 45% of Nigerian adults have a bank account.
The second phase should increase adoption tenfold.
“…greater success is envisioned for the project, with Phase 2 expected to bring more gains with the target of approximately 8 million active users,” the governor said.
In line with the growing access to digital currency, the central bank will now allow unbanked Nigerians to open an eNaira digital wallet through a USSD code. Additionally, users can now integrate their CBDC wallets with the National Digital Payments System (NIPS).
As eNaira struggles, Nigerians have continued to flock to the digital asset industry. The West African country has been leading the continent in terms of trade volume and number of users for years. A report revealed that over 33 million Nigerians had owned a digital asset at any given time, rivaling the United States and Russia.
Watch: The presentation of the BSV Global Blockchain Convention, CBDC and BSV
New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn about bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.