Godwin Emefiele's digital currency plan divides Nigerian bitcoin investors

After labelling cryptocurrency as a tool used by criminals to fund their activities, the Central Bank of Nigeria said it will deploy its own digital coin by year's end.

The financial regulator's decision to compete against bitcoin and other cryptocurrencies has driven a wedge between crypto investors within the country.

One digital currency investor sees the CBN initiative as a solution to high interest rates, among other benefits, another believes NIGCOIN is dead on arrival due to obvious reasons.

Nigerian cryptocurrency traders are divided over the recent announcement by the Central Bank of Nigeria (CBN) to launch its digital currency (NIGCOIN) five months after declaring cryptocurrency illegal.

In a bid to compete or drown the emergence of unregulated cryptocurrency within the country, the financial regulator said by the end of this year, Nigerians will have access to its own electronic coins.

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It will be used in the same manner the country's official tender, naira, is being utilised for goods and services. A squad [consisting of government and private stakeholders] will be put together by the apex bank to actualise the 2021 goal which came as a surprise to many, including cryptocurrency insiders.

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Individuals and Institutional investors have been cashing in on cryptocurrency as a store of value or hedge against inflation without paying financial tribute to their residential government.

The essence of a digital currency is its decentralised form, which means its activities is not being regulated by an authority [unlike the CBN's] - even though it's volatile to currency influencers like Tesla founder, Elon Musk, Chinese and the United States governments.