The Apex bank of Nigeria, Central Bank has revealed that it shall soon launch a digital currency for the Naira, e-Naira which will strengthen the stability of the banking activities as deposits will become more diversified when more people banked.
The apex bank digital currency will make it easier for the banking system to follow the existing protocols on anti-money laundering, customer guidance against fraud, and safeguarding the payment systems.
This revelation was made known by the CBN’s Deputy Governor, Operations, Mr Folashodun Shonubi, at the Chartered Institute of Bankers of Nigeria (CIBN) advocacy dialogue series 4 webinar held on Thursday in Lagos state.
Expectations for the soon to be launched digital currency e-Naira
The CBN Governor Mr. Folashodun Shonubi in highlighting the benefits, e-Naira shall bring to the Nigeria financial peril after its implementation he says:
“The central bank in its implementation has ensured the e-Naira feeds our economy and provides greater value”
“The central bank digital currency offers all the benefits of cash but in digital form.”
“Every single digital currency is an electronic version of the cash, the legal tender.”
“When you make cash payment, settlement is done instantly; digital currencies entail the same promises and even more.”
“CBDC offer a safer option from the privately issued crypto currency which have been based on the possibility to enable cheaper transactions but have now been used for investment.”
Read also:Elon Musk Unveils Tesla Humanoid Robot
“The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby ensuring the stability of the payment system in the long run. I expect in the coming days we will see rapid inclusion rates.”
“For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic.”
“I am of the view that at this era CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.” He concluded.
In extending the benefits of the yet to launch digital currency, e-Naira, Lamido Yuguda who is the Director – General of the Securities and Exchange Commission (SEC), says: one of the main players in the successful activities of the digital currency, e-Naira which is about to be launched in October is that, it will help improve the capital market when joined with vibrant inter – developmental policies, which would lead to financial inclusion, especially in the capital market.
In his words, the SEC director says:
“this is an opportunity for the fintech market to connect our people to existing opportunities in the financial sector, connecting our people with investment opportunities in other climes.”
“Once we do that, we would grow our market, Nigeria has 200 million people. We are blessed with a hardworking youthful population.”
“This capital market would in turn finance the necessary infrastructure investment that this country needs today .”
Also Read-How to compress or reduce PDF file size
How to get e-Naira after it launched
In other to ensure judicious dissemination of the digital currency, the CBN has planned a rollout in a tiered manner;
First, it will issue the e-Naira, to financial institutions like banks. Your bank will then retail the e-Naira to you.
If your transaction value is less than 50,000 a day, you don’t need a bank account to get the e-Naira. All you need is a NIN verified phone number to purchase the e-Naira.
How to withdraw or cash out the e-Naira.
To retract or cash out the e-Naira, especially for a value more than 50,000, then you will need BVN verification inclusively, NIN verified phone number.
The CBN has provide a very strict KYC (Know Your Customers) rules for this process, the aim is to ensure all retailers safety and safeguard the utility of the e-Naira.
What is the likely risk involved in using e-Naira.
The major risk in using e-Naira is data security. The e-Naira being an online activity, the BVN and NIIN information is also online, the risk of malicious actors trying to illegally gain access to the user’s details is very low but can’t be 100% prevented from happening.
The process of minting and burning e-Naira tokens by the CBN has to be top notch.
See also:6 Shocking Health Benefits of Garlic
In general, the launch of the e-Naira will bring an addition to the Nigerian economy, and it’s a progressive move towards a cashless environment with lower cost and high productivity.