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Facts: things you need to know about NIGERIA'S digital currency, the e-Naira.

As we all know the CBN has launched the e-naira (which was on October first this year) and also released some guidelines on the e-naira, if you are in doubt of what the e-naira is, it is simply Nigerians digital currency, well I'll be discussing with you some of the things you need to know about the e-naira and the requirements before you can access it and also the positive and negative effects of using the e-naira.

What is the e-naira?

To begin we have to have a clearer understanding of what the e-naira is, the e-naira is Nigerians digital currency, it is the same as the naira but digital and it is also called CBDC ( central bank digital currency).

Who is making the e-naira

You may have wondered who is making the e-naira or did the CBN become so magically advanced in technology and the act of digital money-making.

Of course not, cause there is a partner responsible and helping the CBN in making the e-naira, the company responsible is called BITT incorporated, the company BITT is based in Barbados.

 BITT incorporated is a fintech company that uses blockchain technology and distributed ledger technology to enable p to p transactions with seamless mobile money.

The reason this company was chosen (according to the CBN) was that BITT incorporated had created a digital currency for the Eastern Caribbean central bank, although BITT incorporated was chosen from over a hundred bidders who were competing to create the e-naira, the CBN also claimed that they are tested and trusted.

BITT incorporated was made to register as a limited liability company in Nigeria, in which the CBN now owns part of shares in their (bitt Inc) Nigeria company.

What is the e-naira process like

First of all the app is said to be like a wallet for example like opay wallet, first thing first there are different levels and launch stages.

First let's talk about stages, in stage one the CBN says it would be responsible for issuing, distribution, redemption, and destruction of the e-naira.

Then in the second stage, the financial institutions will come into play like banks would be able to request and issue stable coins, meaning the e-naira is stable and would not be able to bear interest like cryptos.

In the third stage, the Nigerian government is involved in the sense that they would be responsible for processing digital payments.

In stage four merchants are expected to provide low-cost payments and business management software, POS, and online transactions.

Stage five is the retail stage and how the e-naira is going to work.

Now, what are the wallet levels?

In the first tier, users with no bank accounts would be asked to provide passport, name, and phone numbers, the first tier has a limit of #50,000 for sending and receiving.

For the second you must have a bank account with any existing banks in Nigeria, in this level you can send and receive #200,000 and the minimum requirement is yours.

In tier three you can receive and send a million (limited) and in the fourth (known as merchant level) you can send and receive millions that are, it is unlimited.

Advantages of using the e-naira

One good thing about the e-naira is that AML(anti-money laundering) will be built into the system, and also it is cheap and faster.

Disadvantages

It could phase out big payment providers, one thing also is that our information would be in the hands of the government.


Conclusion: that's all, for now, to know about the e-naira, well one good thing is that we now have a digital currency like other countries, but will the e-naira work, will it affect Nigerians positively or negatively, well feel free to leave a comment below, and thank you for reading.

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CBN NIGERIA'S Nigerians e-naira

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