Weeks After Banning Cryptocurrency, Nigerian Government To Launch eNaira

On Monday, the Nigerian Government will unveil the new digital currency called eNaira at the state House, Abuja.

The Nigerian Government is launching eNaira weeks after banning Cryptocurrency, saying it’s an illegal tender.

President Muhammadu Buhari was to unveil it on October 1, 2021, to celebrate the nation’s independence was abruptly annulled by the Central Bank of Nigeria.

CBN Osita Nwanisobi, the Director, Corporate Communications, confirmed the plan to launch eNaira on Monday.

The CBN said the eNaira is the outcome of several years of research work to advance the bounds of the payment system for easy financial transactions.

eNaira
eNaira

The statement reads, “Following series of engagements with relevant stakeholders including the banking community, fintech operators, merchants and a cross-section of Nigerians, the CBN designed the digital currency, which shall be activated on Monday, October 25, 2021.

“The eNaira, therefore, marks a major step forward in the evolution of money, and the CBN is committed to ensuring that the eNaira, like the physical naira, is accessible by everyone.”

The CBN also said continuous modifications, capabilities, and enhancements should be expected, given that the eNaira is just unveiling.

The CNB also said it would continue to work with relevant partners to ensure a seamless process that would benefit every user, particularly those in the rural areas and the unbanked population.

The CBN stated that it would continue to work with relevant partners to ensure a seamless process that would benefit every user, particularly those in the rural areas and the unbanked population.

“Since the eNaira is a new product, and among the first CBDCs in the world, we have put a structure to promptly address any issue that might arise from the pilot implementation of the eNaira,” the CBN said.

However, experts have warned that there are ups and downs to the eNaira.

Though the innovation would facilitate international trade and enhance a more cashless society, it is prone to fraud and could be hacked to defraud innocent Nigerians.

According to a local paper report, A senior lecturer of Economics at the Pan Atlantic University, Dr Olalekan Aworinde, says eNaira would play an essential role in promoting a cashless business environment.

“One of the positive implications of eNaira is that we will have a more cashless environment alongside ease of doing business. Internationally, it may facilitate trade,” he said.

“Also, we will likely have a more developed digitalised way of banking, which means that those in the IT should brace up to the challenge and provide solutions and the way forward. However, the major disadvantage is that of fraud. We are likely going to see more fraud with a lot of people losing their eNaira,” he added.

“I don’t know how prepared the CBN is. If they are prepared, it would be good for the economy. If not, it would be an opportunity for hackers to feed large on people’s resources,” he warned.

eNaira available with or without Internet

The CBN had said eNaira is accessible to Nigerians with or without internet-enabled phones.

“The eNaira thus risks further alienating sections of the population who are uneducated, lack exposure and access to internet services or digital devices,” it said.

“To mitigate this risk, the bank factored in need for inclusiveness as part of the core design principle of the eNaira. This principle has enabled the bank to focus on simplicity and ease of use, ensuring that Nigerians without Internet-enabled phones can access the service,” the CBN added.

©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.
Follow
X

Follow

E-mail : *
Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More