What You Must Know Ahead of E-Naira Launching
What You Must Know Ahead of E-Naira Launching is that the E-Naira will be launched on the 1st day of October 2021;
The Central Bank of Nigeria will be launching an electronic version of the Naira to be known as E-Naira.
What You Must Know Ahead of E-Naira Launching also is that the CBN will introduce the long-awaited e-Naira next month. This is according to the apex body will reduce the cost of operations and cash management. It would also leave a clearer footprint of digital transactions.
The e-Naira will make it easier for financial institutions to track transactions locally and internationally.
Financial Institutions would still be relevant
The digital currency would be implemented through a two-tiered model, which would enable a structure that leaves room for public-private partnerships. Just like the physical currency, the CBN will design the e-Naira but disseminate it through regulated financial institutions.
The financial institutions would then provide digital cash to individuals and businesses.
It’s not a Cryptocurrency
While all cryptocurrencies are digital currencies, it is important to note that not all digital currencies are cryptocurrencies. The e-Naira would be regulated by the Central Bank of Nigeria.
However, cryptocurrencies are not regulated by any government.
Implementation is on track
A recent development in the process of implementing digital currency is the selection of a technical fintech partner.
The technical partner is Bitts Inc. After a thorough selection process, as prescribed by the Nigeria Public Procurement Act, Bitts Incorporated emerged as a partner to the CBN for this innovative project.
Bitts Inc. prioritises the creation of payment systems that ensures an increase in social inclusion, financial inclusion and overall sustainable economic growth.
The excellence in their operation methods has earned them acknowledgement from the Bretton Woods Institutions (IMF/World Bank). This is one of the reasons the CBN enlisted them for this crucial exercise.
Also, the company was the first fintech to digitize a national currency on a blockchain by creating a synthetic CBDC with the support of the Governor, Central Bank of Barbados and the country’s Minister of Finance.
As Nigeria counts down to her 61st Independence Day celebration, citizens can look forward to the start of a digital era.
The era where the CBN prioritises making financial operations more citizen-centric.
According to the Geo-economics Centre, the Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, and Gernada are five countries that have fully launched digital currencies.
if things go according to plan, Nigeria will be amongst them and the 6th to do so.
