Nigeria is experiencing a severe cash shortage due to the Central Bank’s decision to replace older bank notes with larger denominations in the face of rising inflation, leading to increased adoption of the eNaira, the country’s CBDC.
The value of eNaira transactions increased by 63% to $47.7 million, as the lack of physical cash forced Nigerians to use digital currency. The total number of CBDC wallets grew more than 12 times compared to October 2022, currently standing at 13 million. Developing countries see CBDCs as a way to reduce operating costs and strengthen anti-money laundering initiatives.
