Post by Trade facilitator on Nov 13, 2021 22:24:02 GMT 1
All You Need To Know About Nigeria’s Central Bank Digital Currency (CBDC)
In its simplest form, the eNaira is the digital form of the Nigerian physical Naira that we currently have in circulation in the country. The CBN issued the eNaira in line with Section 19 of the CBN Act. This means that it is a direct liability of the Central Bank of Nigeria (CBN).
The eNaira digital currency is built on the Blockchain open ledger technology that has the capability of preventing duplication or fake units. Each eNaira digital currency will be unique and different from others.
Digital currency mining is different from something like gold mining, and crypto currency minting is different than real-life coin minting.
Digital currency mining is the process of recording and verifying transactions on a public digital record of transactions, known as blockchain. Mining new blocks allows for the blockchain’s continuation.
The eNaira was developed by the fintech company, Bitt, based in the Carribeans.
At the time of launching, the CBN Governor, Godwin Emefiele, said that 500,000 eNaira ($1.21 Million) had already been minted.
Nigeria is the first country in Africa and among the few in the world to develop an official digital currency.
It is true that the currency has taken off, but many people still do not understand how it operates and why the country should introduce a digital currency alongside the fiat currency already in existence.
CBN also said that eNaira will be available to Nigerians who do not have internet-enabled phones.
One of the things that will make the digital currency popular is when citizens start using the eNaira without data or internet-enabled phone.
The eNaira according to the CBN will complement the performances of the existing methods of payments and mobile banking apps, point-of-sale (POS) terminals, USSD (unstructured supplementary service data), fast response code, and internet banking.
The CBN is saying “Specifically, identity frameworks such as the NIN will enable access for the financially excluded as they can be uniquely identified, thereby enabling the provision of financial services. These identity systems will help ensure a robust KYC framework positioned to enable access for all Nigerians.”
Now, let us look at the CBDC (Central Bank Digital Currency); this term refers to the virtual form of a fiat currency. A CBDC is an electronic record or digital token of a country’s official currency. As such it is issued and regulated by the country’s monetary authority or the Central Bank of that country.
The following are reasons why you should use the eNaira – the country’s digital currency:
It is noteworthy that the eNaira is Africa’s first Central Bank Digital Currency (CBDC); this was ushered into the country and continent by the fourth industrial revolution. The eNaira will benefit all Nigerians and country at large.
It will be good if you can take your time to understand all about this digital currency in order to understand it fully.
Remember that the launching of the eNaira was suddenly postponed due to the unexpected surge by members of the public who were ready to visit the website for downloads immediately.
One of the benefits as the CBN stated is that the eNaira is meant to create a secure and cost-effective process for the remittance flow to the country amongst other benefits.
Comparing the eNaira with the fiat currency, i.e. the normal paper currency, the eNaira account holder is not charged for daily transfers between accounts.
Traders will not be charged fees for deposits and withdrawals from their bank accounts; this is a huge incentive. You know how much you are charged by banks on fiat currencies monthly on your various accounts.
Transaction fees being currently charged by banks is completely eliminated, this will surely lower cost of doing business in Nigeria and at the same time increasing security.
Furthermore, the CBN said that the eNaira will be used as a means to send direct payments to Nigerian citizens eligible for specific welfare programmes by the government.
We promise all members of this forum to get them up to date on the eNaira; do not reject it without any tangible reason. We shall help you dig into it and bring to you all you need to know. We have just started.
If you do not care and eventually the government start remitting money to citizens and having the eNaira wallet is a major condition, and you don’t have it, what will you do?
Therefore, let every member of the forum embrace the eNaira, it is our own digital currency and it is cost effective to use against the regular or fiat currency.
You will hear from us on eNaira and others again.
In its simplest form, the eNaira is the digital form of the Nigerian physical Naira that we currently have in circulation in the country. The CBN issued the eNaira in line with Section 19 of the CBN Act. This means that it is a direct liability of the Central Bank of Nigeria (CBN).
The eNaira digital currency is built on the Blockchain open ledger technology that has the capability of preventing duplication or fake units. Each eNaira digital currency will be unique and different from others.
Digital currency mining is different from something like gold mining, and crypto currency minting is different than real-life coin minting.
Digital currency mining is the process of recording and verifying transactions on a public digital record of transactions, known as blockchain. Mining new blocks allows for the blockchain’s continuation.
The eNaira was developed by the fintech company, Bitt, based in the Carribeans.
At the time of launching, the CBN Governor, Godwin Emefiele, said that 500,000 eNaira ($1.21 Million) had already been minted.
Nigeria is the first country in Africa and among the few in the world to develop an official digital currency.
It is true that the currency has taken off, but many people still do not understand how it operates and why the country should introduce a digital currency alongside the fiat currency already in existence.
CBN also said that eNaira will be available to Nigerians who do not have internet-enabled phones.
One of the things that will make the digital currency popular is when citizens start using the eNaira without data or internet-enabled phone.
The eNaira according to the CBN will complement the performances of the existing methods of payments and mobile banking apps, point-of-sale (POS) terminals, USSD (unstructured supplementary service data), fast response code, and internet banking.
The CBN is saying “Specifically, identity frameworks such as the NIN will enable access for the financially excluded as they can be uniquely identified, thereby enabling the provision of financial services. These identity systems will help ensure a robust KYC framework positioned to enable access for all Nigerians.”
Now, let us look at the CBDC (Central Bank Digital Currency); this term refers to the virtual form of a fiat currency. A CBDC is an electronic record or digital token of a country’s official currency. As such it is issued and regulated by the country’s monetary authority or the Central Bank of that country.
The following are reasons why you should use the eNaira – the country’s digital currency:
It is noteworthy that the eNaira is Africa’s first Central Bank Digital Currency (CBDC); this was ushered into the country and continent by the fourth industrial revolution. The eNaira will benefit all Nigerians and country at large.
It will be good if you can take your time to understand all about this digital currency in order to understand it fully.
Remember that the launching of the eNaira was suddenly postponed due to the unexpected surge by members of the public who were ready to visit the website for downloads immediately.
One of the benefits as the CBN stated is that the eNaira is meant to create a secure and cost-effective process for the remittance flow to the country amongst other benefits.
Comparing the eNaira with the fiat currency, i.e. the normal paper currency, the eNaira account holder is not charged for daily transfers between accounts.
Traders will not be charged fees for deposits and withdrawals from their bank accounts; this is a huge incentive. You know how much you are charged by banks on fiat currencies monthly on your various accounts.
Transaction fees being currently charged by banks is completely eliminated, this will surely lower cost of doing business in Nigeria and at the same time increasing security.
Furthermore, the CBN said that the eNaira will be used as a means to send direct payments to Nigerian citizens eligible for specific welfare programmes by the government.
We promise all members of this forum to get them up to date on the eNaira; do not reject it without any tangible reason. We shall help you dig into it and bring to you all you need to know. We have just started.
If you do not care and eventually the government start remitting money to citizens and having the eNaira wallet is a major condition, and you don’t have it, what will you do?
Therefore, let every member of the forum embrace the eNaira, it is our own digital currency and it is cost effective to use against the regular or fiat currency.
You will hear from us on eNaira and others again.
