Nigeria's in-house central bank digital currency (CBDC), the eNaira, is gaining popularity due to severe fiat currency shortages. As a result of the central bank's decision to replace older banknotes with larger denominations, the country is facing an acute cash shortage, forcing Nigerians to use the eNaira. The value of eNaira transactions increased 63% to 22 billion nairas ($47.7 million) in a country where cash accounts for about 90% of transactions. The total number of CBDC wallets grew more than 12 times compared with October 2022 and is currently at 13 million. For developing countries, CBDCs present a way to overcome challenges presented by the fiat economy, including reducing operating costs and strengthening anti-money laundering initiatives.

Read the full article on CoinTelegraph