President Muhammadu Buhari has stated that digital currency and its underlying technology, called blockchain, can increase Nigeria’s GDP by $29 billion over the next 10 years.
He stated this when speaking while unveiling eNaira on Monday in Abuja.
Buhari stated that Nigeria’s digital currency will help move people and businesses from the informal into the formal sector, thereby increasing the tax base of the country.
He said eNaira would cater for businesses and households seeking faster and cheaper means of payment instead of “private currencies” that have gained popularity and acceptance across the world, including Nigeria.
Also Read: Buhari Launches Digital Currency eNaira
“In recent times, Your Excellencies, the use of physical cash in conducting business and making payments has been on the decline. This trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new Digital Economy,” Buhari said.
“Alongside these developments, businesses, households, and other economic agents have sought new means of making payments in the new circumstances.
“The absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of “private currencies” that seemed to have gained popularity and acceptance across the world, including here in Nigeria.
“In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.”