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13 Days To Launch Of E-Naira, Here Are Six Things You Should Know

By Gabriel Adejo

The Central Bank of Nigeria (CBN) announced intentions to establish a digital currency called the “e-Naira” by October 2021 in June 2021, joining 81 other countries who are seriously investigating digital currencies.

After two years of deliberation, the CBN made its conclusion on digital money technology. Another reason for launching digital money is the CBN’s goal of achieving 80 percent financial inclusion by the end of 2021.

While there is a lot of information available regarding this upcoming digital money, there are six things you should know about the nature of this innovation:

It’s all done digitally
The e-Naira would be a Central Bank Digital Currency (CBDC), which means that it would be a token that would only exist in digital and electronic form, whilst being regulated by the CBN.

It can be transferred from one person to another
Local and international transfers with little to no time latency and lower transaction fees than real currencies would be possible with the CBDC. It would also allow you to move funds from your bank account to your digital currency account.

It has several financial benefits
Nigerians can now conduct easier cross-border trade and receive cheaper and faster remittances thanks to the e-Naira. A digital currency would also empower Nigerians with more financial prospects by allowing them to establish new business opportunities as well as financial products and services.

Another benefit of the e-Naira, according to the CBN, is a reduction in the cost of operations and cash management. It would also establish a better trail of digital transactions, making tracking transactions easier for financial institutions.

Institutions of finance would continue to be important
A two-tiered model would be used to implement the digital currency, allowing for public-private partnerships. The CBN will design the e-Naira, but it will be distributed through regulated financial institutions, who will then provide digital cash to individuals and businesses, just like the physical currency.

It isn’t a form of cryptocurrency
Although all cryptocurrencies are digital currencies, not all digital currencies are cryptocurrencies. The Central Bank of Nigeria would regulate the e-Naira, but no government regulates cryptocurrencies.

The implementation is proceeding as planned
The selection of a technical fintech partner, Bitts Inc., is a recent milestone in the process of deploying digital currency. Bitts Inc. emerged as a partner to the CBN for this unique project after a thorough selection procedure as mandated by the Nigeria Public Procurement Act.

Bitts Inc. prioritizes the development of payment systems that promote social inclusion, financial inclusion, and overall sustainable economic growth; the Bretton Woods Institutions – IMF/World Bank – have recognized their superiority in operation methods. One of the reasons the CBN enlisted them for this vital exercise is because of this.

In addition, with the backing of the Governor, Central Bank of Barbados, and the country’s Minister of Finance, the company was the first fintech to digitize a national currency on a blockchain by producing a synthetic CBDC.

Nigerians can look forward to the start of a digital era in which the CBN prioritizes making financial operations more citizen-centric as the country approaches its 61st Independence Day celebration.

The Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, and Gernada are five countries that have completely launched digital currencies, according to the Geo-economics Centre; if everything goes well, Nigeria will be one of them.

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