CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Nigeria launches eNaira after delays

By Robert Davis


Updated

Lagos, Nigeria
Lagos, Nigeria - Photo: Shutterstocl

Nigeria became the latest country – and the first African nation – to issue its own cryptocurrency on Monday after the country’s central bank launched the eNaira.

At a press conference,  President Muhammadu Buhari described the new currency as one that will “serve as the support for every electronic payment in Nigeria.”

As of 4pm EDT, the eNaira wallet had more than 5,000 downloads, according to a report from Vanguard.

'Not just another CBDC'

eNaira is described as “not just another central bank digital currency” (CBDC), according to the asset’s official website. Instead, it is “a people-oriented digital currency leveraging technology to connect individuals and businesses for easy trading and financial inclusion,” according to the website.

The asset was developed in partnership with fintech company Bitt, which also helped develop the Easter Caribbean Central Bank’s CBDC.

Bitt CEO Brian Popelka said he is proud his Barbados-based company helped Nigeria launch the digital currency in “record time.”

“Today's launch is an exceptional achievement for both the CBN and Bitt teams. We look forward to continued partnership on this CBDC deployment journey and to provide additional features to expand eNaira's value to all Nigerians,” Popelka said in a press release.

Nigeria’s central bank governor Godwin Emefiele said during the press conference that more than 500 million eNaira ($1.21m) have already been minted.

It was originally scheduled to launch on 1 October but was delayed because of Nigerian Independence Day.

US100

21,066.70 Price
+0.060% 1D Chg, %
Long position overnight fee -0.0248%
Short position overnight fee 0.0026%
Overnight fee time 22:00 (UTC)
Spread 1.8

Gold

2,553.52 Price
-0.700% 1D Chg, %
Long position overnight fee -0.0177%
Short position overnight fee 0.0095%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

0.71 Price
+3.740% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

90,824.45 Price
+2.280% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

About face

The adoption of the eNaira is an about face for Nigeria’s government, which outlawed cryptocurrencies in February. Now the currency is in circulation, eNaira’s website claims it will be “a trusted ally to the numerous customers we will serve and our roots continue to be firmly grounded in them.”

More than 81 countries are looking to adopt a similar digital currency, according to eNaira’s website. Some examples include China, the Bahamas, and the European Union.
Last month, El Salvador unveiled a legal cryptocurrency tender. However, the rollout was shaky due to technical difficulties with the country’s wallet and it has since been mired in regulatory action.
 

 

Read More: Lucid Motors shares close 11.4% higher as production ramps up

The difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You  can still benefit if the market moves in your favour, or make a loss if it moves against you.

However, with traditional stock trading you enter a contract to exchange the legal ownership of  the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the fullvalue of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading