Nigerian currency

Abuja, Nigeria — Nigeria's currency, the naira, has dropped to a record low against the U.S. dollar as Nigerians scramble to buy U.S. currency ahead of a redesign of naira notes. Nigerian authorities say replacing the notes will reduce inflation, combat counterfeiting and bring more money into circulation. But security and economic experts warn the move could damage Nigeria's economy. It's been just over a week since the Central Bank of Nigeria (CBN) announced its plan to redesign the country’s highest paper denominations - the 200-, 500- and 1,000-naira notes. Tijani Salisu, a black-market dealer of foreign currencies, said the demand for U.S. dollars has jumped since the announcement. On Thursday, the naira traded at 860 to the dollar, nearly double the official bank rate. "People are coming with the naira to buy dollars and keep because of this situation,” Salisu said. “And if you go to the bank to withdraw dollars, you can't find dollars in the bank.” The new naira notes will begin circulating in mid-December, and the old notes will cease to be legal tender by the end of January, according to the CBN. The central bank says the move will put more money in circulation. Currently, an estimated 85% of all money in Nigeria is stashed away in homes, outside the banking system. The CBN also says the new notes will help authorities curb fake currencies in circulation and keep criminals in check. Experts fault the timing of the decision. Economist and head of the Center for Soc...

The eNaira, Nigeria’s central bank digital currency (CBDC), was released over a year ago to widespread interest. However, as of October 2022, it barely had any usage within a country full of crypto-curious investors, even as paper Naira notes are in The eNaira is built on top of the The protocol itself is a good choice. Open-source development is popular in the crypto community for its decentralized nature and the belief that an open codebase will lead to better security. The Hyperledger protocol has frequent updates and is fast: eNaira logistics and security features The CBN has been making sure that the eNaira is not just a separate digital currency, but something that works within the existing economy. In September, the bank A big fear around crypto is its popularity with criminals. The CBN has taken steps to ensure that financial crimes cannot be committed using the eNaira, which they have outlined thoroughly in a regulatory guidelines Technical drawbacks of the eNaira Unfortunately, the anti-laundering measures built into the eNaira can be seen by users as a breach of privacy, with the government able to monitor all your money and potentially use that information for control. This brings us to the biggest problem with the eNaira: the centralization. While most blockchains and cryptocurrency networks are built around the tenet of openness and transparency bringing power back to the people, the eNaira seems to have been created to preserve as much government power as po...