This news does not come as a surprise at all. In today’s world, countries that have an eye on the future are already adopting regular cryptocurrencies like Bitcoin as their legal tender. And those who can are launching theirs.
But how would the e-Naira work? Who can use it? How accessible will it be? Here is all you should know about Nigeria’s proposed first digital currency.
What is e-Naira?
This is the soon-to-be-launched digital currency by Nigeria’s apex bank – the Central Bank of Nigeria (CBN). When launched, it will not replace the physical naira presently used in the country. But as the name suggests, it will be a digital representation of the physical naira.
How will it work?
As mentioned earlier, the e-Naira will be a digital form of the physical naira and while the latter is saved in banks, the former will be held in e-wallets.
Licensed commercial banks in Nigeria will be responsible for creating e-wallets for customers where their e-naira will be held. The banks will also be responsible for the processing of payments through digital currency.
What is an e-Naira wallet?
What a bank account is for the physical naira is what an e-wallet will be for the e-Naira. The process of creating an e-wallet is still the same process as creating a regular bank account for physical cash.
It is important to note that an e-Naira wallet is different from a regular bank account if one person has both, they cannot be linked with each other.
Read Also: Making Sense of The CBN Ban On Cryptocurrency In Nigeria
Is the e-Naira another form of cryptocurrency?
The e-Naira is not a cryptocurrency. It is a digital currency and it affects the value of the naira positively, unlike cryptocurrencies. The value of the e-Naira is the same as the physical naira as they as both issued by the CBN.
It is not an investment vehicle like cryptocurrencies but a legal tender that would help Nigerians carry out transactions without needing physical money.
When will it be launched?
As announced by the apex bank, CBN, the first phase of the e-Naira rollout will begin on the 1st of October 2021. More details on the digital currency will be circulated and how Nigerians can access it will still be communicated by the CBN.
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