Nigerian government announces statutory digital currency 'e-Naira'

On August 30, 2021, the Central Bank of Nigeria (CBN) announced that it would partner with fintech company Bitt to launch the Nigerian government's digital currency, e-Naira.

CBN drafts guidelines to Nigerian banks on e-Naira – Nairametrics

Nigeria to partner with Bitt Inc to launch'eNaira' digital currency | Reuters

CBN picks Bitt Inc as technical partner for e-Naira roll-out

CBN engages British fintech to develop digital currency --Punch Newspapers

CBN is presenting the e-Naira project to banks in Nigeria, and from the contents, 'e-Naira will become legal tender in Nigeria' and 'interest-free Central Bank Digital Currency (CDBC) ' Designs such as 'that', 'remittance limit of 50,000 naira (about 13,000 yen) per customer', and 'transaction limit based on transaction amount' have been clarified.

The presentation materials explain the mechanism of e-Naira from the five perspectives of 'financial authorities (CBN),' 'financial institutions,' 'e-government,' 'private companies,' and 'consumers.'

Financial Authority : CBN deals with the earliest elements, including the issuance, distribution, redemption and destruction of currencies. Save data on cloud servers to monitor and analyze currency transactions.
Financial institutions : Licensed financial institutions issue stablecoins, request currencies, manage digital currencies at branches, perform identity verification procedures, and take measures against money laundering.
E-Government : E-government efficiently handles the transfer of digital currencies from citizens and businesses.
Private Enterprise : Provides software related to digital currency management, including low-cost payment software and business management software.
Consumers : Enjoy the benefits of digital currencies with a 'user-centric' design.

CBN Governor Godwin Emefiere said, 'The introduction of CDBC will increase cross-border transactions, giving everyone access to financial services, whether poor or refugee, making remittances easier and easier. It will be cheaper and easier for social intervention, 'he said. He also revealed that digital currencies will improve the efficiency of tax collection and payment systems, making monetary policy more effective.

Bitt, whose alliance was announced, is a Barbados-based company in the Caribbean Sea and is known as the company that developed the world's first CDBC, 'DCash.' CBN argues that Bitt was chosen because of its 'technical competitiveness,' 'efficiency,' 'platform security,' 'interoperability,' and 'implementation.' e-Naira will be announced by the end of 2021.

While Nigeria was one of the first African countries to put into operation CDBC, the region still has a persistent negative view of digital currencies. For example, South African Reserve Bank Governor Lesetja Kganyago said, 'Cryptocurrencies are not recognized as currencies because they do not meet the three requirements for currencies.'

South Africa Bank:'Crypto Is Not Currency' |

The three conditions by Governor Caniago are as follows.

1: Must be a generally accepted currency
2: Accepted as a way to store value
3: Being a value measure in the economy

According to Governor Caniago, crypto assets can be exchanged as money, but they are 'accepted only by participants' and do not meet condition 1.

in Posted by logq_fa