The Central Bank of Nigeria is set to unveil a digital currency dubbed the ‘e-Naira’ by October 2021.
According to CBN, the e-Naira is a legal tender equal to the value of the naira and thus must be accepted as a form of payment by all merchants and business outlets in the country.
Below are seven things you should know about the e-Naira:
- The e-Naira is a currency that only exists in an electronic form.
- The liability of the e-Naira money is directly borne by the CBN, the same way the liability of the physical naira rests on the central banker.
- From October 1st, 2021, when the currency goes into effect, Nigerians can open e-wallets on their phones.
- One of the benefits of digital currency is that it would reduce the cost of minting the physical naira and kobo.
- The CBN Director, Payment System Management, Mr. Musa Jimoh added that charges of transferring funds would be lower for those using the e-naira.
- Based on a CBN presentation on eNaira, banks will be responsible for promoting and marketing the centrally issued digital currency as a cash alternative to existing and potential customers in support of its goal for financial inclusion.
- The eNaira’s, system will be subjected to comprehensive security checks, and all data and personally identifiable information will be kept off the ledger and not be stored on the ledger.