It’s no longer news that the Central Bank of Nigeria (CBN) have introduced digital currency known as e-Naira.
e-Naira, a digital currency that allows exchange between people online was introduced months after the CBN placed a ban on Cryptocurrency.
Recall that CBN had banned the use of cryptocurrency because it is not being issued by a Sovereign Authority and it’s being allegedly used mostly by Money launderers.
A decision which received condemnation from different quarters, especially, from Nigerian youths who trade crypto.
While other nations in Africa are going into digital currency, below are 9 things you should know about CBN e-Naira which will be launched on October 1, 2021.
9 Things You Should Know About The E-Naira Introduce By CBN
- This digital currency will allow easy transaction but is it different from any other digital currency because it will be issued by a sovereign authority, which is the CBN.
- A digital currency issued by a government works differently from cryptocurrency like Bitcoin.
- According to the CBN, the e-Naira will aid financial inclusion and propel a cashless policy.
- e-Naira, which was created to facilitate digital transactions, does not need to be backed with physical cash.
- It will not grow in value like Bitcoin or other crypto currencies but it will function the same way the Naira does.
- The e-Naira will be pegged to the Naira so their value remains the same like stable coins pegged to the dollar.
- The e-Naira will be created independently of bank accounts; the wallet will be created by financial institutions that will create customer identification through an application product interface.
- It is a legal tender for the entire country, it will have a non-interest bearing Central bank Digital Currency status, a transaction limit for customers and a value-based transaction limit.
- As a National Critical infrastructure, the e-Naira system will be subjected to comprehensive security check, all data and personally identifiable information (PII) will be kept off the ledger and will not be stored on the ledger.
While October is two months away, we look forward to see what impact e-Naira will give to the already stressed Nigerian Naira.