Nigeria Explores Stablecoin Amidst eNaira Challenges
Nigeria's central bank has formed a task force to evaluate the adoption of an official stablecoin, casting doubt on the future of its struggling digital currency, the eNaira. Launched in 2021, the eNaira has failed to gain traction, with only 0.5% adoption among Nigerians and 98.5% of wallets inactive, according to IMF data from 2023.
Technical hurdles have further hampered the eNaira's progress, including the removal of its mobile app from Google Play and the failure of its USSD code. Despite partnerships with blockchain firms and attempts to integrate the eNaira into government payments, the project remains largely dormant.
The Central Bank of Nigeria's pivot toward stablecoins signals a potential shift in strategy as the country seeks to modernize its financial infrastructure. Stablecoins, with their peg to stable assets, may offer a more viable solution for widespread adoption compared to the eNaira's centralized model.
