Nigerians are not Welcoming the Government-Issued Digital Currency

Consumers are more likely to support a government-issued digital currency but not Nigerians

Digital currencies are here to stay. Whether decentralized like Bitcoin, managed by a private company like USDC, or controlled by a government such as the Bahamas' sand dollar, the only question is what will prove most popular—and longest lasting. New survey data from business intelligence firm Morning Consult has found that consumers in emerging markets are more likely to support a government-issued digital currency.

Contrary to framing by policymakers, the data also reveals that consumers around the world do not distinguish between CBDCs and private cryptocurrencies, with many showing support for both. But Nigeria's central bank digital currency (CBDC) is not getting the warm reception expected from its crypto-savvy population. According to a Bloomberg report, less than 0.5% of Nigeria's 217 million population are using the government-issued digital currency — the eNaira — a year after its launch.

This comes despite Nigeria being identified by Chainalysis as the top country in Africa for crypto adoption and ranking 11th globally, while a KuCoin report found that 35% of the Nigerian population aged 18 to 60 had owned or traded cryptocurrencies this year.

Bloomberg noted that Nigerians have been confused due to a lack of clarity from the state which cracked down on crypto last year. In February 2021, the Central Bank of Nigeria banned banks from servicing crypto exchanges in an effort to sever fiat on and off ramps.