Ghana leads the charge in CBDC adoption, Nigeria in the wings

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By: Gerelyn Terzo

The region of Africa is one with some of the greatest potential for implementing digital currencies. The reasons are two-pronged, including a high percentage of the population that is either unbanked or underbanked as well as the continent’s bustling remittance industry. Governments have begun to take notice and have decided to do something about it.

African nations, including Ghana and Nigeria, are moving forward with central bank digital currencies, or CBDCs, which are digital versions of a country’s fiat money that are issued by the state and can be used as legal tender. By way of comparison, bitcoin, the first and largest cryptocurrency, has its own issuance model and is not backed by any asset or government.