According the geo economic centre, with the launch of e-Naira will make Nigeria to be among other five countries such as the Bahamas, Saint Kitts and Nevis Antigua and Barbuda, Saint Lucia, and Grenada that have fully launched and introduced digital currencies that is, if Nigeria could meet up to their exercise as planned.
When is the e-Naira going to be launched
As revealed by Nigeria Apex bank, Central Bank of Nigeria, they says that the e-Naira shall be launched on October 1st 2021.
According to them, the e-Naira shall equate the value of a physical Naira Note and must be accepted as a form of payment by all merchants and business outlets within the country.
The Apex bank Director, Payment System Management, Mr. Musa Jimoh, said during an interview on channels tv that:
“Today, anywhere you present naira to pay, compulsorily it must be accepted because that is our fiat currency.”
“So, the same way naira is accepted that you can’t reject it, is the same way e-Naira must be accepted.”
“Anywhere in this country where e-Naira is presented, it must be accepted. So, merchants must accept e-Naira as a means of payment.”
Furthermore, he advised Nigeria to hesitate and download the e-Naira wallets in their mobile devices after its launched on October 1, adding that CBN bear all liabilities.
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In his words, he said: “the liability of the e-Naira money is directly on CBN which is similar to the cash you hold.”
“The liability of the cash you hold today rests with the CBN. So, it gives Nigerians the opportunity to bank with CBN,”
Aftermath of the e-Naira, the challenges that may block it’s flourish
The federal government has revealed its plan for the launch of a digital currency that shall serve as a local currency and shall be called e-Naira.
This move has been applauded by many as it looks like a technological advancement in the country and steps to follow other countries such as South Africa, Ghana, China etc that have made the move to create a local currency for their nation.
However, there has been lots of diverse assertion on the government decided to launch a digital currency.
While some question the positive reason for the introduction of the digital currency and of what value shall it add to the national economy, others have concluded that the project is produced to fill the void of inaction thereby giving the government a sense of personal satisfaction.
As at last year 2020, cryptocurrency trading had dominated the whole universe and became millennials choice for investment.
Aside United State that came first on the country with most investment in the crypto world, Nigerians came second right after them.
What could be the reason behind Nigerian dominance in the crypto world? This is because Nigerian has a bubbling youthful population with a bubbling tech ecosystem.
The country currency is unstable and top government official has been accused to have a great investment in the cryptocurrency thereby prompting all other youths to go into the platform.
Unfailingly, the crypto trade paid off as the majority of its investors were able to earn a reasonable amount of profit from it.
As time goes on, the population of Nigerian going into the crypto trading increases which led to the federal decision to regulate the platform as they see cryptocurrency as a yard stick for the unstable of the local currency.
Hence, the federal government ban the platform in February 2021 therefore driving numerous operators underground.
The ban of the trading brought about different clamour in the country and hence, redressed was asked of from the federal government.
In form of redress on the ban of crypto trading and to come clean and as well embrace the reality come forth the development of e-Naira.
Challenges that the e-Naira may face.
Logically, the majority of Nigerians are attracted to any platform where they could gain maximum profit without needing to waste much time.
This number one reason has led to many to fall victim of fraudulent Ponzi schemes such as MMM and many others.
Many Nigerians like to sow reap and sow quickly. Nigerians have no patience when it comes to an investment as they always want quick returns when they invest in any platform and if e-Naira is unable to produce the result desired by her citizen, it may likely fail.
Below are some challenges that may be faced by the e-Naira.
First, The e-Naira should have the potential to provide the result of positive return to investors as it is what Nigerians want.
Secondly, the federal government should not forget her relationship with the larger populace and the reasons behind the ban of crypto, Many Nigerians believe that the federal government introduction of the e-Naira is to serve as a means to regulate the financial activities of her citizen and that the floatation of e-Naira does not come with clean intension.
This absence of trust between the government and her citizen may hamper the e-Naira from flourishing in the country as it shall be monitored and all the transactions of the digital currency which is not how cryptocurrencies operate.
Thirdly: The Nigerian economy is significantly unstructured and informal so anything that requires structure, regulation and order may become unpopular with the people
Lastly, The static nature of the e-naira would also be a deterring factor with most Nigerians being a large user of cryptocurrencies to perform transactions.The speculative nature of cryptocurrencies does not have static value but the reverse is the case in the advent of e-Naira.
The CBN regulate and as well has guidelines for the financial institution, the accepted and not accepted business and the liscensed businesses must or mustn’t engage in.
Aside the reasons mentioned above that may serve as a bane to the success of e-Naira, the idea of a digital currency is an excellent one.
The federal government should try to address the following challenges and make an effort to curb these challenges from surfacing.
The government should not berate the issue of trust in the system. It is going to be the main survivor of the digital currency.