the central bank digital currency (CBDC) that would be used by Nigerians was officially launched on Monday, by the President of the country.
the name eNaira has already been announced for a while now but the project officially kicked off days ago. eNaira was developed by a fintech firm based in the Caribbean named Bitt. The Central Bank governor announced that 500 million eNaira which is equal to ($1.2million) has already been minted.
The CBDC app was launched on the google play store and after about 24 hours the app was taken down from the play store as a result of bad reviews. Users had difficulties using the app and some even complained about not being able to register.
As of the time of writing this the app is now available on the play store. Nigeria is among the few countries that officially have a CBDC in a later article I will share the list of all the countries that have a digital currency.
The main reason why I am writing this here is to tell you all the important things you need to know about the new digital currency.
I overheard my friends saying they will buy as much eNaira as possible with the hope of making gains later. I had to explain things to them and that is why this article is very important.
If by the end of this article you find useful information please share it with your loved ones so they don’t get scammed or waste money investing in digital currency.
eNaira: the important things you should know
it is Backed by the Naira
the official currency used and accepted in Nigeria is Naira. so, the eNaira is coming in as the digital version of the naira. it is issued by the Central Bank of Nigeria in line with section 19 of the CBN. the digital asset is a direct liability of the Central Bank. It is built on a blockchain open ledger that prevents duplication of fake units. According to the CBN, each eNaira will be different and unique.
It is not a cryptocurrency
This is one of the major areas where people will get it wrong because it is a digital currency that doesn’t mean it is a crypto. It is backed by the Nigerian government whereas cryptocurrencies are decentralized and not controlled by anybody. The digital coin has a legal tender that represents physical cash. The eNaira has the same value as the naira. it is only a way of easing transactions and reducing the need for paper cash.
1 naira = 1 eNaira
The eNaira and physical paper naira will be in circulation together. They will be on par and even if you stack it up to the moon the value will never change. It's not going to be a project you can make gains from like we have seen with Shiba Inu and other cryptocurrencies.
How will Nigerians Hold the eNaira?
Everyone that downloads the app and registers will get a wallet. That is the only way the eNaira will be accessible. Without a wallet, you won’t be able to hold digital currency. It will also be exchangeable with other Central bank digital currencies.
Will there be charges for using the eNaira?
The CBN has stated that for the first 90 days charges for transactions with the eNaira will be free. applicable charges will be applied once the 90 days ultimatum elapses. Official statements on how much will be charged haven’t been made clear.
If you have any other questions regarding the usage of the eNaira feel free to ask them in the comments below.
Do you think the Federal Government would allow crypto currency exchanges/ markets to have access to this new invention?
Do you think of any trait that this invention may caused Nigeria; eg. creating a bogus environment for fraud, looting, scam, and sponsorship of crimes etc?