Post by Trade facilitator on Dec 17, 2021 21:49:00 GMT 1
How To Become An eNaira Merchant In Nigeria And Start Making Cool Money
Nigeria is the first country in Africa to introduce a digital currency.
What is a digital currency and how does it work?
A digital currency is a means of payment or what you can call money that exists purely in an electronic form. A nation’s Central Bank digital currencies are issued and regulated by the nation’s monetary authority or its Central Bank and usually backed by the government.
Please note that this digital currency is quite different from the existing electronic central bank money, which is provided by the central banks but can only be used by banks and selected financial institutions. When financial institutions pay each other, they pay in reserves from accounts held with a central bank.
The eNaira is Nigeria’s official digital currency initiated by the Central Bank of Nigeria and approved by the Federal Government of Nigeria (FGN). It is expected that the eNaira will improve its monetary value; it will be using a medium of exchange and will be generally acceptable in the world.
The eNaira is a direct liability on the central bank and is available to all households and businesses giving them access to electronic central bank money. Therefore, Nigeria’s eNaira is the digital form of the Naira and will be used just like cash.
It can however be transferred or exchanged using modern technologies such as blockchain; this is a system of storing records of transactions across a network of computers.
The Federal Government had stated that the eNaira is equivalent to the naira and must be accepted by all and sundry in the country as a legal tender and must be accepted as a form of payment by all merchants and business establishments.
It is important to know that a central bank’s digital currency is not a crypto currency. Crypto currencies like Bitcoin and Ethereum are not currencies in many countries as they are not general accepted as a means of payment.
Why Did Nigeria Launch A Digital Currency?
The Central Bank of Nigeria has at several occasions and instances given reasons why it established the eNaira and they are:
To promote and facilitate financial inclusion (so that many people will start using the financial system)
To enable direct welfare disbursements to citizens
To facilitate diaspora remittances
To reduce the cost of processing cash
Improve the availability and usability of Central Bank money
Increase revenue and tax collection
Support a resilient payment system
Improve the efficiency of cross-border payments
With eNaira individuals can easily cut-off middlemen like banks when making payments to each other and save precious cash on interests and cost of transaction.
How Do You Become A Merchant Of The eNaira?
This is going to be an excellent opportunity to enter into a financial business like those people in the Point Of Sales (POS) currently.
The eNaira merchants will carry out their own business in a digital format. For you to be fully registered, you will have to go to your bank and speak with the customer service personnel in charge of the eNaira merchant Application. You will be provided with a form which you will be required to fill with all necessary information for you to become a fully approved eNaira merchant.
Are There Risks Involved, If Any How Can It Be Mitigated?
One of the major drawbacks of the eNaira is its potential to disrupt the existing banking system. What of if the citizens decide to keep their money in digital format instead of physically in the bank? Banks will have no money to lend to the banking public and do other financial obligations.
This can make banks to raise interest rates to attract customers to deposit and leave their money in the banking system.
We will continue to bring to you all you need to know about the eNaira so that you can make the best of the currency.
Nigeria is the first country in Africa to introduce a digital currency.
What is a digital currency and how does it work?
A digital currency is a means of payment or what you can call money that exists purely in an electronic form. A nation’s Central Bank digital currencies are issued and regulated by the nation’s monetary authority or its Central Bank and usually backed by the government.
Please note that this digital currency is quite different from the existing electronic central bank money, which is provided by the central banks but can only be used by banks and selected financial institutions. When financial institutions pay each other, they pay in reserves from accounts held with a central bank.
The eNaira is Nigeria’s official digital currency initiated by the Central Bank of Nigeria and approved by the Federal Government of Nigeria (FGN). It is expected that the eNaira will improve its monetary value; it will be using a medium of exchange and will be generally acceptable in the world.
The eNaira is a direct liability on the central bank and is available to all households and businesses giving them access to electronic central bank money. Therefore, Nigeria’s eNaira is the digital form of the Naira and will be used just like cash.
It can however be transferred or exchanged using modern technologies such as blockchain; this is a system of storing records of transactions across a network of computers.
The Federal Government had stated that the eNaira is equivalent to the naira and must be accepted by all and sundry in the country as a legal tender and must be accepted as a form of payment by all merchants and business establishments.
It is important to know that a central bank’s digital currency is not a crypto currency. Crypto currencies like Bitcoin and Ethereum are not currencies in many countries as they are not general accepted as a means of payment.
Why Did Nigeria Launch A Digital Currency?
The Central Bank of Nigeria has at several occasions and instances given reasons why it established the eNaira and they are:
To promote and facilitate financial inclusion (so that many people will start using the financial system)
To enable direct welfare disbursements to citizens
To facilitate diaspora remittances
To reduce the cost of processing cash
Improve the availability and usability of Central Bank money
Increase revenue and tax collection
Support a resilient payment system
Improve the efficiency of cross-border payments
With eNaira individuals can easily cut-off middlemen like banks when making payments to each other and save precious cash on interests and cost of transaction.
How Do You Become A Merchant Of The eNaira?
This is going to be an excellent opportunity to enter into a financial business like those people in the Point Of Sales (POS) currently.
The eNaira merchants will carry out their own business in a digital format. For you to be fully registered, you will have to go to your bank and speak with the customer service personnel in charge of the eNaira merchant Application. You will be provided with a form which you will be required to fill with all necessary information for you to become a fully approved eNaira merchant.
Are There Risks Involved, If Any How Can It Be Mitigated?
One of the major drawbacks of the eNaira is its potential to disrupt the existing banking system. What of if the citizens decide to keep their money in digital format instead of physically in the bank? Banks will have no money to lend to the banking public and do other financial obligations.
This can make banks to raise interest rates to attract customers to deposit and leave their money in the banking system.
We will continue to bring to you all you need to know about the eNaira so that you can make the best of the currency.
