Nigeria is another country with a state-owned cryptocurrency [eNaira]

eNaira is currently the official cryptocurrency in Nigeria. Thus, it became the first country in Africa to introduce cryptocurrency into the state circulation. First in the world was Venezuela, whose digital petro was a response to US sanctions and rampant inflation. 

The Central Bank of Nigeria (CBN) was responsible for introducing eNairy. The tests turned out to be successful and today the cryptocurrency works without any reservations. On the other hand, the CBN announcement states that this is only the first step, actually: "One of the milestones in a long journey".  

Nigerian bankers concerned

As everywhere in the world, including in Nigeria, the banking sector did not take these changes with optimism. However, experts stress that bankers must be ready to accept disruptive technologies. Until now, they have been sold to most industries, except for traditional finance. That is why such a shock is caused by just introduced changes. However, they should not come as a surprise, especially in the era of the soon to be launched digital currency of the central bank (CBDC).

The Nigerian media, however, write directly about the tension in the financial system, especially in the headquarters of commercial banks, which were not prepared for such a move. Banks have always acted as intermediaries, while modern cryptocurrencies based on blockchain technology do not need any intermediaries. Moreover, banks have very limited opportunities to earn from cryptocurrencies, so this is what worries their analysts the most.  

However, the Nigeria branch of the Guardian writes that it is too early to say that eNaira will reduce the number of banking transactions. However, the bankers' anxiety is understandable, because even a small flow of capital to the cryptocurrency will be a financial loss for them. 

"Bankers must change"

However, the banking sector is disillusioned by an expert in international finance prof. Ken Ife.

“Banks, like other industries, do not and will not have any control over the evolution of blockchain technology. It depends, however, on the bankers whether they will reorganize their work wisely, which will allow them to take advantage of the benefits of the new technology, or will only watch what will make them fall behind and will not find a place for them in the world of new finances " - emphasizes prof. Ken Ife.

The Central Bank of Nigeria emphasizes that eNaira is not supposed to take the place of commercial banking services, but to complement them. According to the Nigerian government, this will in no way destabilize the banking system and will benefit the entire economy of the country. It is supposed to be, among others integration of various financial systems, but experts evaporate that in Nigeria - as in many African countries - there is still economic illiteracy, which may mean that the new solution will in practice be used only by the elite.

Venezuela has paved the way for cryptocurrency

Recall that the first country that introduced the state cryptocurrency, was Venezuela. Due to US sanctions, which made it difficult, and in many cases even prevented the sale of crude oil, the country was plunged into poverty and rampant inflation. 

So it was invented that oil would be sold for cryptocurrencies - they could not be blocked by the international banking system. From here, it was only a step to launch a state-owned cryptocurrency that protected citizens from inflation. This is how petro was created, which quickly found its way to the thatched roofs, literally. 

In petro, not only international transactions are settled. You can pay taxes there, and many companies have switched to paying wages in cryptocurrency. Even retirees receive their benefits in petro. It is also a means of payment accepted in large stores, service outlets and, of course, in offices and state institutions.