The Difference between eNaira and Cryptocurrency

The eNaira is the digital form of Nigeria physical Naira. The Nigerian central bank digital currency was developed by  a fintech company called bitt. In this article, we've discussed the differences between eNaira and Cryptocurrency. Although the both are digital Currencies but there are some different between them.


CBDC as been put in place in some countries like U.K and China etc. But Nigeria is the first country in Africa to adopt the use of Central Bank Digital Currency (CBDC). Meanwhile, the digital currency has taken off, many Nigerians still do not understand the usage.

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However, in this post, as I said earlier, we've discussed differences between eNaira and cryptocurrency but before we dive to that, let me just quickly explain how eNaira works.

How eNaira Works

The eNaira works in such a way that CBN will provide the currency to intermediaries (i.e financial institutions) who would in turn help distribute to individuals/customers. These institutions would maintain and manage  individual wallet to collect eNaira from the CBN. They would thereafter oversee ID verification, eNaira payment processing, and generation of wallets for Nigerians to keep their eNaira. Through the app, customers would be able to identify a bank of their choice, connect to their bank accounts and carry out transactions.

The differences between eNaira and cryptocurrency.

Probably, you've been wondering if the eNaira is the same as cryptocurrency. No it isn't. The eNaira is a digital form of Naira Introduced and manage by the Nigeria Money Authority (CBN). 

Though, the eNaira and Cryptocurrency are digital Currencies but differs differs in term of authority and management.

The eNaira is centralized and manage by Central Bank of Nigeria. While Cryptocurrency is a decentralized digital currencies. That is, every transactions perform using any altcoin cannot be traced or refund.

The eNaira is a legal tender which is equivalent to Naira and it can be accessed through the eNaira app available on Google play store and iOS app store. 

The eNaira is a stable currency, that is, it will not fluctuate due to market influence at a different rate - just like physical Naira used to do. The cryptocurrency also fluctuate due to market influence also.

Still talking about the eNaira and Cryptocurrency. The differences are not much but the similarities got most people think both currencies are the same.

Similarities between the eNaira and Cryptocurrency

eNaira and Cryptocurrency are digital currencies, meanwhile both of them are differ in term of security and regulations. The eNaira is centralized while the cryptocurrencies are decentralized.

Both digital currencies are manage/access via an application. Either a desktop or mobile applications.

The eNaira is equivalent to Naira while the cryptocurrencies value is calculated based on USD. 

Both currencies gives users the opportunity to access their transactions history via the application provided to manage them.

Advantages of eNaira

eNaira, as said earlier - it's a legal tender and equivalent to Naira note. The purpose of creating eNaira is to act as Naira digitally - so that it will be used to carry out any online payment activities anywhere in the world.

The big and fact question that will pop up in your mind is - is eNaira not the same as digital banking?

eNaira and Digital Banking

Digital Banking is a form of using Central Bank Reserves to perform transactions within commercial banks. While eNaira is a digital currency. I hope you are getting the point? Let me explain further..

A reserve currency large amount of currency held by Central Banks and major financial institutions to use for international transactions. Meanwhile, the reserve currency does not only work for international transfer, it is also used for transactions within commercial banks in Nigeria.

For instance, if John send money from his First Bank of Nigeria mobile app to Temmy's United Bank for Africa bank. Instead of First bank to carry physical cash to UBA, the reserved currencies will be in used to perform the transaction. The reserve currency is regulated and manage by Central Banks.

Differences between eNaira and Reserve Currency (digital banking)

eNaira is a digital currency while reserve currency is used by commercial banks to perform transactions within themselves.

Similarities between eNaira and Reserve Currency

Both currencies are being manage by commercial banks.
Central Bank of Nigeria issues both currencies.


eNaira in Nigeria has brought deepening to financial inclusion and also ease financial transactions between individual, businesses, International transactions and Non-governmental organization (NGO)


Hello! My name is Morichgan . I'm a content writer. I write stories about Finance, Businesess and Technology. Contact me via the contact page. Thanks.

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