eNaira, bitcoin and mobile money: what’s the difference?

This means that eNaira works differently from the cryptocurrencies we hear about, such as Bitcoin or Dogecoin.

For example, eNaira is regulated by the Central Bank of Nigeria, which controls its value.

Although eNaira, like Bitcoin, operates on a blockchain ledger – which means that all transactions and records of ownership are stored in a decentralized computer database – only the Central Bank of Nigeria can mint, issue, distribute or destroy eNaira.

In contrast, most cryptocurrencies, such as bitcoin, can be generated by any computer, anywhere in the world, based on an algorithm.

Also, eNaira does not offer anonymity like most cryptocurrencies.

The Nigerian authorities do not want to use unregulated and decentralized cryptocurrencies such as Bitcoin in the country.

In February, the Central Bank ordered all licensed banks and financial institutions to close all accounts that deal or operate on cryptocurrency exchanges.

However, some Nigerians still use these cryptocurrencies for offshore transactions.

How is this different from MObel MUnni?

Mobile money, or mobile money, is not currency. It works as a credit for real currency, like the CFA.

You may be familiar with mobile money transfer services like Orange Money, MTN Money, Wave, M-PESA, or others, and you may have used one.

With mobile money, users buy credit – either with cash or through an online bank account – which is transferred to their mobile account. They then send a code to the recipient’s account, which can be redeemed for cash.

Mobile money services are usually operated by carriers, such as Orange, MTN, 9Mobile or Globacom.

In contrast, eNaira is a currency that is issued directly by the central bank.

It does not act as a Naira credit but is itself a legal tender. To access it, users need to convert Naira to eNaira.

Once users have eNaira in their digital wallet, they can make transfers to other people’s eNaira wallets, pay bills, or maybe even convert electronic money into cash.

While mobile money services can be used by any type of mobile phone, provided they have an active phone number, it appears that eNaira users need a smartphone to download and use the digital wallet, at least for now.

Cryptocurrencies that run on the blockchain are very secure due to the decentralized nature of the system.

Advanced blockchain technology makes it difficult to falsify or duplicate digital property records. In other words, it will be much more difficult to counterfeit.

Another argument in favor of digital currencies is the speed, simplicity and affordability of transactions.

The fact that users do not need an intermediary such as a bank or other company to make the money transfers for them reduces time and costs.

It can also facilitate cross-border payments, including remittances.

However, digital currencies regulated by central banks will not help solve exchange rate problems.

Before other cryptocurrencies like Bitcoin were effectively banned in Nigeria, many people preferred to use it because the value of the naira was weakening.

The eNaira is pegged to the Naira at the official exchange rate, so you will face the same purchasing power issues.

Users will also have to give up a certain degree of privacy in order to use eNaira.

In fact, they will have to provide a bank verification number or a national identification number to access the currency, which will allow the central bank to keep track of their transactions.

The Central Bank of Nigeria is the first bank in Sub-Saharan Africa to successfully launch a digital currency powered by blockchain technology.

Ghana plans to follow suit later this year with e-Cedi.

In Francophone West Africa, the Central Bank of West African States (BCEAO) is still exploring the concept of digital currencies through the West African Center for Banking and Training (COFEB). I organized a workshop on this topic at the beginning of the year.