eNaira: What is eNaira all about-Top Six Things You Should Know About CBN’s Digital Currency

 The digital money was supposed to be introduced on October 1, but it was postponed owing to other events planned for the Fourth of July holiday.

The CBN noted in announcing the debut of the e-Naira that the product, which was developed after years of research, will push the boundaries of the payment system to make financial transactions easier.

The apex bank further stated that the debut of the digital currency is a significant step forward in the evolution of money, promising that the e-Naira, like the traditional Naira, will be accessible to all.

Following President Muhammadu Buhari's statement, Nigeria's central bank digital currency (CBDC), the eNaira, was introduced today.

Buhari claims that the digital currency and blockchain technology it employs may spur economic growth and boost Africa's largest economy's GDP by $29 billion over the next ten years.

According to Nigeria's Central Bank (CBN) Governor Godwin Emefiele, roughly 500 million eNaira (1.21 million) have already been produced in preparation for the digital currency's launch.

The CBN stated in a statement on Saturday that the launch of the eNaira "marks a huge step forward in the evolution of money, and the CBN is dedicated to ensuring that the eNaira, like the real Naira, is accessible."
CBDCs are fast gaining traction around the world, with Nigeria being the first African country to launch a sovereign-backed digital currency experiment.

Nigeria's CBDC experiment is now the second largest behind China's digital yuan, with a population of 211 million people. Furthermore, over 62 percent of Nigerians are aged 24 or younger, making the eNaira accessible to a populace that is substantially digitally literate.

The eNaira was created by Bitt, a fintech business whose Digital Currency Management System is also responsible for the East Caribbean Central Bank's digital currency DCash.

What are the benefits of eNaira?

Here are six facts regarding the e-Naira that everyone should be aware of:

1. Beyond CBDC

The e-Naira, according to the CBN, isn't simply another CBDC (Central Bank Digital Currency); it's a "people-oriented" digital currency that uses technology to connect consumers and businesses for easier trading and financial inclusion. In the process of developing the platform, the apex bank claimed to have pushed limits, crossed divides, and recounted real-life human experiences. On the e-Naira official website, the CBN stated, "We are the leading audience-centric digital currency sporting a face."

2. Built with current realities

The CBN goes on to say that the e-Naira has undergone a careful thought and implementation process from the start, beginning with an understanding of current realities in Nigeria's evolving payment landscape, working with clear objectives and principles derived from those realities, meticulously laying out the aspects of the architecture and infrastructure, and keeping track of real-time risk management protocols.

Cashless policy, National Financial Inclusion Strategy, Bank Verification Number, Shared Agent Network Expansion Facility, Payment System License Categorization, and NIBSS Payment Infrastructure Establishment were all taken into account.

3. General benefits

The e-Naira is projected to promote economic growth by making capital and financial services more accessible, resulting in more economic activity at a low or no interest transaction rate.

It is also supposed to provide a safe and affordable diaspora remittance option, as well as speed up such transactions.

The e-Naira makes it more difficult for individuals or organizations to commit fraud because of its traceability.

While its inability to be forged makes it extremely sturdy and dependable, the e-Naira promotes financial inclusion by bringing financial services to populations that lack access to traditional banks.

The development of the e-Naira is projected to boost local and international trade, and the nation's digital currency is expected to improve revenue collection by lowering the cost of managing cash.

4. Outstanding digital experience

Diaspora payments are predicted to become cheaper and safer as a result of the e-Naira, ensuring that individuals get more value for every Naira they earn. In terms of local payments, consumers can avoid the lines by paying their taxes and bills from the comfort of their own homes in a more convenient and reliable manner.

The CBN also guarantees that financial government aid would reach the people immediately because the e-Naira eliminates middlemen and allows individuals to claim funds directly.

The e-Naira also promises safe banking, which is an added bonus.

Those concerned about the safety and security of banking information should rest assured that everything is traceable thanks to the transparency.

Aside from faster and better transactions, the CBN claims that the eNaira will allow people to send money, save money, and save time.

5. More for Individual Businesses

When looking at the features, it's clear that there are specialized solutions that are all-encompassing for both individuals and businesses. It provides money transaction solutions to local and international Non-Governmental Organizations and Religious Institutions, ensuring that, at the end of the day, their attention is on carrying out their programs rather than the security and use of the money behind each activity.

While anyone can donate at any time, the e-Naira is designed to make spending tracking and report generation for NGOs practically automatic. This is because the traceability of each eNaira ensures that ledgers are balanced and that the exact identity of the recipe is known.

Customers are anticipated to return to businesses that accept eNaira payments because they can pay for services with such simplicity. eNaira's customer base extends beyond Nigeria's borders because international payments are not only possible, but also quick and inexpensive. "The more patronage, the more profit!" declares the CBN.

Furthermore, because the CBN has access to business owners' wallet information and may make direct deposits on their behalf, eNaira makes it easier for them to receive government assistance allowances.

The government is also expected to see an increase in revenue, according to the apex bank, because the eNaira makes more funds available for development projects such as better feeder roads, more affordable education, and better equipped health facilities by reducing cash handling costs and implementing more transparent taxing systems.

It is expected that spending eNaira will result in a wealthier government and citizens.

6. Unified Payment System

Customers can easily transfer funds from their bank account to their eNaira wallet. They can also use their eNaira wallet to make in-store payments by scanning QR codes.

Individuals may easily monitor their eNaira wallets, check balances, and view transaction history, and users can send money to one another using a linked bank account or card.

The cost of transmitting and receiving money more quickly and easily will be relatively low, according to the CBN. Customers may verify their payments at any time and from any location because there is always a transaction history.

The CBN claimed on the eNaira official pages that intra/inter financial institution transactions are not only possible, but also faster and less expensive. Customers can also benefit from seamless cross-border transactions and hassle-free foreign exchange.

Finally, the eNaira functions as a means of exchange and a store of value, providing "greater payment prospects in retail transactions than cash payments." It also has a unique operational structure, according to the CBN, that is "both exceptional and unlike any other type of central bank money."

The CBN's goal is for eNaira to enable households and companies to perform quick and efficient transactions.

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