In October, their central bank governor said that Nigeria is planning to set up a cryptocurrency, the so-called ‘e-naira.’ In February, Nigeria prevented its banks and financial institutions from trading in cryptocurrencies or facilitating them.
Governor Godwin Emefiele of the central bank said that the “e-naira” will operate as a wallet for customers to hold their bank account with existing funds.
In value like Bitcoin or other cryptocurrencies, e-Naira will not grow or plummet.
It’s interesting that eNaira works the same way as Naira. The difference is digital. The first one. The Naira will remain the same as the stable coins linked to the dollar. The value of the eNaira remains the same.
“CBDC’s suddenly won’t turn around your fortune,” said Chuta.
The eNaira is attached to the Naira and therefore retains the Naira value.
Owonibi confirms Chuta’s position, stressing that eNaira ‘does not provide inflation insulation.’
In the main, stablecoins maintain their value in the same way. A stable coin is a volatility-immune cryptocurrency. They have the same value as fiat. They have reverse assets, such as commodities or foreign currency, as part of Investopedia. In the eNaira case, the Naira is supported.