Federal Court of Nigeria Approves eNaira CBDC Rollout

eNaira will be circulated alongside its fiat currency promising a faster, cheaper and more secure option for monetary transactions.
Federal Court of Nigeria Approves eNaira CBDC Rollout

In Brief:

  • Court approved the rollout of Nigeria’s Digital currency, eNaira
  • Federal High Court puts an end to the contention over “eNaira” trademark infringement
  • The decision is likely to be in favour of launching its Digital currency, even after the defendants’ urge to halt the launch of eNaira

The Federal High Court of Nigeria approved the rollout of the country’s central bank digital currency (CBDC), the eNaira. A long-awaited legal decision over trademark infringement on the Central Bank of Nigeria’s Digital currency (CBDC) turned against the company claiming its right over the trademark. 

The launch of eNaira was initially considered a bone of contention regarding the name ‘eNaira’ as eNaira Payments Solutions Limited. The issue arose when the court approved the rolling out of eNaira. This was revealed in the hearing yesterday at the Federal high court 8, headed by Justice Taiwo Aboyami Taiwo.

As stated by the solicitor of the company, the launch of eNaira is a deliberate infringement of his client’s trademark. 

In contradiction to the court ruling, the company requested the court to hold back its decision to roll out CBDC. The court has not yet nodded to the urge. However, it has been adjourned for further hearing on Monday; 11th October 2021.

The Digital currency, eNaira, was previously supposed to be launched on October 1, 2021. Conflict between the CBDC and the company delayed the proceedings. Yet, that’s not the sole reason for the postponement of eNaira’s launch. The court seeks to consider the national interest, mainly because introducing eNaira would have a major impact on the country’s existing financial system.  

Countries around the world are working on introducing CBDCs. Recently, The central bank of Laos announced the release of a study on its CBDC with the support of a Japanese fintech firm. They will explore the possibility of launching a digital version of Laos’s currency Lao Kip.

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