Browsing: Legal tender

  • Out of the 174 central banks surveyed by the IMF, 40 allowed the issuance of digital currencies.
  • For a currency to qualify as legal, it must be included in the country’s laws and classified in its monetary unit.
  • Legal tender status is granted to a currency in a country only if it is accepted by the larger population and can be received with ease. 

A lot of people are transitioning from the traditional way of holding money (notes and coins) to digital electronic money (digital currency, stable coins, and e-money).

This has been caused for a number of reasons:

  • Difficulties in gaining access to traditional financial services
  • Advances in African technology
  • The services provided can be paid for with digital currency.
  • Covid-19: Regular money was discouraged as it was viewed as an agent for transmitting the virus. As a preventive measure, e-money was widely encouraged.

Read: Africa is cryptocurrency-friendlier than