Since the ban on cryptocurrency, the Central Bank of Nigeria (CBN) introduced e-Naira. It is a type of digital currency that allows people to exchange money online.
The CBN prohibited the use of cryptocurrency for a variety of reasons, including the fact that it is not issued by a sovereign authority.
On October 1, 2021, E-Naira will be introduced. Here are some facts about it that you should be aware of:
- This digital currency will facilitate transactions, but it differs from other digital currencies in that it will be issued by a sovereign authority, the CBN.
- A government-issued digital currency functions differently than a cryptocurrency such as Bitcoin.
The CBN believes that the e-Naira will promote financial inclusion and a cashless policy.
- The e-Naira, which was created to facilitate digital transactions, is not backed by physical currency.
- As with the Naira, the value of the coin will not appreciate as quickly as that of Bitcoins or other cryptocurrencies.
- In much the same way as stable coins pegged to dollars, the e-Naira will have a fixed value.
- The e-Naira will be created independently of bank accounts; the wallet will be created by financial institutions through an application product interface.
- This currency is legal tender throughout the country, does not bear interest, and has a transaction limit for customers as well as a rate-based transaction limit.
- As a critical national infrastructure, the e-Naira system will be subjected to extensive security checks, and all data and personally identifiable information (PII) will be kept off the ledger.