The Central bank of Nigeria (CBN) is set to launch a digital currency dubbed the e-Naira, on October 1st 2021.
According to the Central Bank of Nigeria, the currency is a legal tender which is equal to the value of naira and thus, must be accepted by all merchants and business outlets as a form of payment. The e-Naira will not earn any interests to holders. The e-Naira is built on a blockchain open ledger technology. Creating the e-Naira on blockchain means you cannot have a fake or duplicate e-Naira. Each e-Naira note will be unique.
Below are things you should know about the e-naira:
The e-naira is the first indigenous Nigerian currency which only exists in an electronic form.
The liability of the e-naira money is directly borne by the Central Bank of Nigeria, the same way the liability of the physical naira rests on the CBN as well.
From October 1st, 2021, when the currency goes into effect, Nigerian can open e-wallets on their phone.
One of the benefits of the digital money is that it would reduce the cost of minting the physical. naira and kobo.
The Director of the payment system of the CBN, Mr Musa Jimoh, added that the charges of transferring funds using the digital currency, would be lower for those using it.
Based on the presentation on the e-Naira by the CBN, commercial banks will be responsible for marketing the centrally issued digital currency as a cash alternative to potential and existing customers in support of its goal for financial inclusion.
The e-Naira system will be subject to security checks, and all personally identifiable data will be kept off the ledger and not be stored on the ledger.
The idea of introducing the Nigerian digital currency have faced a lot of criticisms by some Nigerians, citing that, it will expose some personal informations such as the Bank Verification Number (BVN), and the National Identification Number (NIN) online. The risk of malicious actors attempting to hack or gain access to the personal data of individuals is very high.
Overall, it’s a plus to the Nigerian economy, and it’s a positive progress towards a cashless society, with lower costs and higher productivity.
Content created and supplied by: FrankChukwu (via Opera News )