The eNaira is a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira.
The official website of the upcoming digital currency, has gone live, exactly one week to the planned launch of the eNaira which serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments.
When The Sight News visited the eNaira website, it was discovered that the website is already up and running with ample information about the eNaira, which the website revealed, has an exclusive operational structure that is both remarkable and nothing like other forms of central bank money.
Benefits of the eNaira
The information obtained from the website disclosed that there are several benefits from a central bank-issued digital currency in Nigeria, and this cuts across different sectors of, and concerns of the economy, noting also that the eNaira serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments.
Growth-eNaira fosters Economic Growth by offering easier access to capital and financial services thereby increasing economic activities at low/no interest transaction rate.
Remittance-eNaira provides a secure and cheaper diaspora Remittance option and an increase in the speed of such transactions
Monitoring-eNaira’s traceability limits its use for illicit or fraudulent purposes.
Welfare-eNaira enables effective, equitable, and faster distribution of cash assistance to households and communities included in government Social Welfare Programs.
Inclusion-eNaira will accelerate Financial Inclusion.
Trade-eNaira increases Local and International Trade by making transactions cheap, safe, quick, and better.
Security-eNaira has a stronger security because it cannot be forged or counterfeit as a result of its unique identity and security structure.
Revenue-eNaira aids Revenue collection by reducing cash handling costs.
In the area of its functionality, the eNaira is said to deliver speedy, safe, and simple trading and transactional opportunities to customers and end-users:It is exchanged peer to peer; It is universal – anybody can hold it; and It does not yield any interest.
Some features of the eNaira include: Unified Payment System—as Customers can now move money from their bank account to their eNaira wallet with ease; Contactless Payment—Customers can make in-store payment using their eNaira wallet by scanning QR codes; Bank Account Management—Customers can monitor their eNaira wallet, check balances and view transaction history; Peer-to-Peer Payment—Allows users to send money to one another through a linked bank account or card; etc.
What You Should Know
- eNaira is a central bank digital currency (CBDC) issued by the Central Bank of Nigeria as a legal tender. It is the digital form of the Naira and will be used just like cash.
- The eNaira wallet is a digital storage that holds the eNaira. It is held and managed on a distributed ledger. The eNaira wallet is required to access, hold and use eNaira.
- eNaira is the digital form of the cash and is a direct liability on the Central Bank of Nigeria while the customer deposits are direct liabilities on the financial institutions.