The transition from analog to digital has been a prominent trend since the dot com boom at the turn of the millennium. It is a trend that has been imbibed by many sectors of society, some more rapidly than others. It is a trend that is in many respects, necessary to maintain relevance in the modern era. Although the earliest mix of technology and finance can be traced back to the French in the 1850s, digital currency is a fairly modern innovation. The introduction of digital currency dates back to 1996 with the introduction of 'E-gold', fast forward to 2009 and Satoshi Nakamoto revolutionized digital currency with Bitcoin.

With the rapid rise of cryptocurrency, digital currencies have fast become the trend in the financial sector and African countries are not left out in this buzz. Recently, Nigeria had joined other African countries such as Tunisia, Ghana and Senegal to introduce a homegrown digital currency called E-Naira, which is expected to launch on the 1st of October 2021.

E-Naira:
The introduction of the digitalised naira has sparked debates amongst experts and Nigerians alike. Some argue this is to replace cryptocurrency banned in Nigeria, others claimed it has no effect on the economy, and so much more.

Is E-Naira Cryptocurrency?
Since the announcement of the E-Naira, Nigerians question if the E-Naira will operate like cryptocurrency. Digital currencies work differently from cryptocurrencies as it's issued and controlled by the government unlike the latter, which is controlled by a singular entity. However, the Central Bank Digital Currency(CBDCS) and cryptocurrency run on blockchains.

Also, the Central Bank of Nigeria director of payment system management, Musa Jimoh in a statement stated that the apex bank will benefit from the savings generated from printing fewer naira notes.

Therefore, since the CBDCS isn't a cryptocurrency, it won't grow in value. Simply put, the E-Naira is the digital version of the naira. It's pegged to the Naira so the value remains the same. Countries that had implemented digital currencies include Ecuador, China, Senegal, Singapore, Tunisia and other countries looking towards the implementation of national currencies includes Estonia, Japan, Palestine, Russia and Sweden.

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