Written by David Ugbabe
There have been several conversations surrounding the eNaira which the FG has planned to launch. The CBN on Monday launched the website. The eNaira is simply an electronic representation of the physical naira currency issued by the Central Bank of Nigeria. According to the CBN, the e-Naira will be a “complementary” legal tender in Nigeria, having the same exchange value as the Naira, and maintain a “parity of value” with the Naira. However, it will not earn any interest to holders.
By October 1, the CBN through its Governor, Godwin Emefiele, says the eNaira will launch serving both as a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments. The Guardian highlights key things you should know about the eNaira;
- It is a digital storage that holds the eNaira. It is held and managed on a distributed ledger.
- It can be used for remittance which includes cheaper diaspora remittance option.
- Unlike cryptocurrency, it is traceable, hence, fraudulent activities can be traced.
- It can be used for both international and local trade.
- It has a unique identity and security structure
- It is exchanged from peer to peer.
- It is universal – anybody can hold it.
- It does not yield any interest.
- Payments can be made by scanning QR codes.
- You can monitor your e-wallet activities.
Users can access the eNaira by downloading the application via either the Google Play Store or Apple Store after completing the registration process on the application. Users with feature phone can utilize, USSD codes and follow the registration prompts.
IS THE eNAIRA SAFE?
WHAT HAPPENS TO THE BANKS?
According to CBN, it is not competing with commercial banks and stresses that the role of the commercial banks is to help distribute the eNaira. “We would be responsible for the central minting and the issuance of the eNaira to the banks and the banks will distribute to the customers. It is an ecosystem where all the major actors participate.