As you may recall, China made cryptocurrency trading illegal in the country in 2019. It was a major setback for Bitcoin, which saw its value plummet all across the globe.
Despite the fact that most governments have banned cryptocurrency trading, some residents have continued to trade, prompting the government to issue a strong warning.
In May 2019, Chinese state institutions issued a warning to cryptocurrency users in the country, stating that they would have no protection if they continued to trade the cryptocurrency, as government authorities promised to put further pressure on the business.
The People’s Bank of China (PBOC) established a digital yuan, a central bank digital currency (CBDC), to substitute cash flow and cryptocurrency, and the prohibition was enacted to ensure the success of these new projects in China.
The People’s Bank of China recently announced that transactions in its digital yuan totaled $11.238 billion at the end of 2021.
China’s Digital Yuan saw a 140 percent surge in digital transactions in just # months from October same last year.
Around the same time, the number of Chinese citizens using the Digital Yuan personal wallet increased by 86.4 percent.
The PBoC China hinted that the Chinese native money, the Digital Yuan, is the world’s most powerful currency in terms of better technology use case with the world’s largest economy.
China authorized four airdrops between October 22 and December 31, so that individuals may show their genuine interest and test it in the early stages without hesitation.
Two airdrops in Beijing, one in Qingdao, and one in Haikou have had a favorable impact and are part of a well-planned strategy for the country.
What happened to Nigeria’s CBDC (eNaira)?
Meanwhile, on October 25, 2021, Nigeria became the first African country to establish its own digital currency, the eNaira.
The digital currency was designed in such a way that users could access it via an app that included a digital wallet that linked to their bank accounts.
Users without bank accounts are limited to 50,000 Naira in daily transactions, while those with bank accounts are limited to 500,000 Naira daily.
However, there has been a lot of mistrust and worries about digital currency. The performance of the eNaira in particular.
Analysts and digital market specialists are concerned that the eNaira’s primary advantage in transferring funds in and out of Nigeria is being eroded by a lack of transparency in the central bank’s multi-rate foreign exchange system.
Furthermore, these flaws have led to a lack of faith in the eNaira, prompting many Nigerians to turn to cryptocurrency.
Concerns have been raised concerning the eNaira’s implementation thus far, with some even questioning its necessity. Nigerians do not trust their government, so the eNaira, which is controlled by the same administration that lacks transparency, is failing miserably.
Nigerians place a high value on trust and openness, and cryptocurrency has become a popular way to move money in and out of the nation. Most businesses and individuals are familiar with and rely on this system.
Despite the fact that many Nigerians downloaded the eNaira App, the number of people who used it was low compared to the CBN’s expectations.
People are still trading cryptocurrency, therefore there isn’t much talk about eNaira these days as crypto trading is still waxing stronger in the country.
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