eNaira can become a cheap payment solution for consumers and businesses and boost financial inclusion,  according to EMURGO Africa.

The firm stated that beyond its financial inclusion target, eNaira could allow businesses and consumers to accept payments at a cheaper rate because of its directness and lack of intermediaries.

It disclosed this in a ‘State of Web 3.0 in Africa’ report, which it produced in partnership with  PricewaterhouseCoopers.

It said, “Beyond financial inclusion, the eNaira can be used for cross-border payments and transfers, with remittances being one of the most compelling applications of digital currencies.

“Through eliminating intermediaries, the eNaira could serve as a dependable low-cost payment solution for consumers and businesses.”

The firms noted that the strong allure of cryptocurrencies In Nigeria was because of the uncertainty surrounding the devaluation of the naira, the promoted promise of financial freedom by earning a passive income, and a lack of job opportunities.

It said, “Blockchain and crypto assets are increasing in popularity across the African continent: the adoption of blockchain technology is slow but progressive, while the cryptocurrency market is growing significantly.”

In a statement to announce the report, EMURGO Africa, disclosed that weakening local currencies coupled with fragile economic backdrops had created rapidly growing demand for USD-pegged stablecoins on the continent, as consumers protect their asset values from free-falling and owners of SMEs seek cheaper and efficient ways of payment.

It said that was responsible for the increasing adoption of digital currencies and blockchain technology as practical solutions in those economically volatile environments.

The Chief Executive Officer of EMURGO Africa, Ahmed Amer, stressed, “Web3.0 technologies are already redefining the African digital landscape, offering innovative solutions to long-standing challenges and empowering individuals and communities across the continent.

“This report presents an in-depth exploration of the potential of these technologies to drive positive change while highlighting the importance of fostering a collaborative environment between stakeholders, policymakers, and regulators to unlock the full potential of Web3.0.”

The firm stated that on the global stage, crypto regulation was evolving, with 40 per cent of 35 nations surveyed having instituted regulatory frameworks, 34 per cent actively developing them, and nine per cent enforcing outright prohibitions on cryptocurrencies.

It explained that despite receiving only 0.5 per cent of global blockchain funding, Africa was committed to Web3.0 technologies and digital currencies were poised to recalibrate the technological and financial landscape on the continent.

 

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