According to the Nigerian Central Bank, e-Naira will enhance the banking system and make it easier to comply with existing rules such as anti-money laundering, customer protection against fraud, and maintaining the payment system’s safety and stability.
Mr Folashodun Shonubi, Deputy Governor Operations of the Central Bank of Nigeria, stated this during the Chartered Institute of Bankers of Nigeria advocacy series webinar on Thursday.
“The Central Bank has ensured that the e-Naira fuels our economy and delivers higher value,” Shonubi remarked.
“The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more”.
He added, “CBDC offers a safer option from the privately issued cryptocurrency which have been based on the possibility to enable cheaper transactions but have now been used for investment.
The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby ensuring the stability of the payment system in the long run. I expect in the coming days we will see rapid inclusion rates.
For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic.
I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”
The pilot project on the E-Naira is likely to be launched in October,” said Mr Lamido Yuguda, Director-General of the Securities and Exchange Commission. People would want to position their digital currencies in such a manner that they would be used by a large number of people outside of their borders.”
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When combined with active inter-developmental policies, Yuguda believes the digital currency will help strengthen the capital market, resulting in financial inclusion, particularly in the capital market.
He added, “This is an opportunity for the fintech market to connect our people to existing opportunities in the financial market, connecting our people with investment opportunities in other climes. Once we do that, we would grow our market, Nigeria has 200 million people. We are blessed with a hardworking youthful population.
“This capital market would in turn finance the necessary infrastructure investment that this country needs today”.
“The digital currency brings the opportunities to reduce poverty and increase financial inclusion, stated Ade Bajomo, President of Fintech Nigeria. In terms of resilience, expediting cross-border payments, and boosting financial inclusion, there are opportunities”.
It also provided an opportunity to investigate Fintech and Nigeria’s digitalization, as well as enable innovators and financial services firms to develop, according to Bajomo.