eNaira – Nigeria’s cryptocurrency (All you need to know)
Read all about Nigeria’s digital currency “eNaira”.
We are truly in the age of cryptocurrency, with bitcoin leading the pack of cryptocurrencies that has changed the landscape of financial payments.
In the last few years, bitcoin alongside the other altcoins have gained much popularity and are getting more adoption on a daily basis. The value of bitcoin has seen tremendous rise in the last few years, and unsurprisingly, a lot of Nigerians are beginning to take interest in these cryptos.
The Nigerian government sometime in February banned banks & financial institutions from dealing in or facilitating transactions in cryptocurrencies.
This decision was met with disappointment by lots of Nigerians, who have since found alternative means to still work with these cryptocurrencies.
The Nigerian government have now decided to launched their own cryptocurrency known as “eNaira”, which is a CBDC (Central bank digital currency) that has its value tied to the Nigerian naira.
In this blogpost, I am going to be writing about the CBDC (Central bank digital currency) known as eNaira, and everything you will need to know about this digital currency.
Remember to leave us a comment after you finish reading and also share with your friends on social media.
Let’s get into it then…
What is eNaira?
eNaira is the Nigerian central bank digital currency that will be launched in October. The eNaira will function the same way the naira does i.e. the value of the eNaira is pegged to the naira (Kind of like a stablecoin).
Nigeria select Bitt Inc as the technical partner in its bid to launch eNaira, and according to the central bank of Nigeria, its objective is to aid financial inclusion, improve payment efficiency, improve revenue and tax collection, targeted social interventions amongst other objective.
CBN director corporate communications Osita Nwanisobi said due to the rise in the use of digital payments and the acceptance of digital economy, the CBN followed a global trend.
The Nigeria CBDC is codenamed “Project Giant” and is expected to launched sometime in October o f 2021.
How does eNaira work?
The eNaira will function the same way the naira does i.e. the value of the eNaira is pegged to the naira (Kind of like a stablecoin).
The CBN governor Godwin Emiefele has said the eNaira would operate as a wallet against which customers can hold existing funds in their bank account.
He also said that the currency would accelerate financial inclusion and enable cheaper and faster remittance inflows.
The CBN will be responsible for issuing, distributing and redeeming the digital currency among other monitoring and management functions.
Nigeria’s CBDC will function under a tiered anti-money laundering & know your customer structure with different transaction limits.
Unbanked citizens will be mandated to provide their national identity linked phone number for verification users in this category will be limited to a daily transaction limit of 50,000 naira.
Citizens with bank accounts can fall under the second & third tiers depending on the number of AML/KYC steps completed. These two levels will have daily limits of 200,000 naira & 1 million naira.
Users of the third tier will likely complete a physical AML/KYC verification process in addition to the bank verification number requirements stipulated for tier two.
Users classified as merchants will also fall under the same 1-million-naira limit as tier three but will have no restrictions as to the amount they can send to their bank accounts.
Value of eNaira
Many people want to know if the value of eNaira will rise like that of bitcoin. The eNaira will function the same way the naira does i.e. the value of the eNaira is pegged to the naira (Kind of like a stablecoin).
The only difference with the naira is that it is digital and has benefits like seamless transfers between enaira wallets and bank accounts with no fees for several type of transactions.
Thank you for reading my post on eNaira. If you have any question or comment, you can leave it below in the comment section below.
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