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Central Bank of Nigeria, CBN launches website for eNaira, Nigeria’s digital currency.
The CBN has said that the eNaira, the digital form of the naira will provide a “unique form of money that is denominated in the naira”.
This means that as a legal tender, eNaira will serve as cash for buying and selling.
The eNaira website, www.enaira.com launched earlier than expected as the CBN had slated the event for October 1, Nigeria’s 61st independence day celebration.
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How the eNaira works
The value of the eNaira will not be different from the physical naira, circulation will be even and it will not replace cash.
The management and intricacies of the eNiara fall on the CBN but banks and financial institutions will handle cash deposits.
The CBN eNaira website will enable a digital wallet for the CBDC that will further promote cashless transactions among people in Nigeria.
Why the eNaira
Following the ban of cryptocurrency in Nigeria, the CBN said it discovered after an investigation that the percentage of Nigerians that engage in cryptocurrency is quite high.
The CBN concluded it will launch a more legitimate digital currency pegged to the naira as it considers cryptocurrency a risk.
According to the CBN, the eNaira will also support Nigeria’s digital economy.
More so, the eNaira will improve the effectiveness of monetary policies and ease tax remittance and collection,” the CBN added.
It will serve as a fast, cheap, reliable and available payment channel.
“The eNaira will complement cash as a less costly, more efficient, generally accepted, safe, and trusted means of payment, the CBN said.”
Nigeria is one of the few countries to have launched a digital currency CBDC pegged to a physical currency. China is currently experimenting on a digital version of the Yuan. More countries are expected to join the action.
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