Nigeria has reportedly done the most to have joined the shortlist of countries to have officiated digital coin, eNaira. The Central Bank of Nigeria, CBN, also commissioned the Central Bank Digital Currency, CBDC, as a virtual fiat reserve that regulates cryptocurrency exchange.
Nigeria became the first African country to endorse eNaira while cryptocurrency remains prohibited, sanctioned by CBN — even the banking industry cannot bank commercially with digital currency.
Nigeria controls and manages its CBDC while other developed countries have hovered iffy around blockchain technology. The American Federal Reserve Board is yet to endorse a federal order to launch an American CBDC.
The Federal Reserve Board reportedly consorted the CBN to gain Insight on debuting CBDC in the States. The FRB-issued discussion paper depicts a keen motive to organise an American CBDC. The FRB still weighs its verdict about indulging in establishing a virtual fiat reserve.
The meeting with CBN was not issued to regulate its CBDC nor draft finance policies. The CBN schooled the FRB to be obliged to announce its participation in creating the virtual fiat reserve, CBDC.
“The paper is not intended to advance any specific policy outcome, nor is it intended to signal that the Federal Reserve will make any imminent decisions about the appropriateness of issuing a U.S. CBDC,” per the FRB spokesman.
The FRB remains iffy about national security after indulging in the blockchain ecosystem that appears to be complex — another reason why the FRB debate about debuting its official digital coin, not to mention organising a virtual fiat reserve to regulate the cryptocurrency exchange market.
Focused on the uptight national security system, the FRB is keen to ascertain whether the CBDC launch will surge its digital economy likewise strengthen its local payment system and security.
“CBDC could provide a safe, digital payment option for households and businesses as the payments system continues to evolve, and may result in faster payment options between countries, there may also be downsides,” per the FRB spokesman
It is worth noting that “A compromised fiat reserve shuts down the economy.” Per the effectiveness of the paper discussion, the FRB seems eager to proceed with developing the virtual version of the American dollar.
It is a no-brainer the Americans are emulating Nigeria’s digital currency strategy in line with the volume of eNaira transacted on its decentralized network.
Over N188m worth of eNaira have been completely exchanged — now take a deep breath and visualise how much the Americans will generate from launching either CBDC or its digital money.