The Central Bank of Nigeria (CBN) has disclosed that the government will have access to the eNaira transactions done by Nigerians and businesses.
In a guideline sent to commercial banks, the financial regulator stated that the data will be stored on a cloud server, as the CBN will monitor and analyse the currency transactions.
What you need to know about Nigeria’s digital currency, eNaira
The implementation process was broken down to five stages: Monetary Authority Suite, Financial Institution Suite, eGovernment Suite, POS merchant integration and Retail Consumer Suite.
The Monetary Authority Suite detailed the CBN will be the authorised issuer of the eNaira, as well as the sole distributor of the government-backed digital currency.
It was gathered that the central bank, which will be in charge of the first product component will be able to redeem and destroy the digital currency.
The licensed financial institution, under the Financial Institution Suite, can only request for the eNaira or stablecoins, and manage it across their branches – similar to the naira implementation.
The eGovernment Suite tends to the role of the government in the process, which is to have access to the transactions done on the wallet which will be domiciled with the CBN.
The banks will later create their own wallet for the digital currency as the CBN had created the apex’s wallet to ensure it meets the deadline for the launch.
How to register for the eNaira
The banks will also onboard customers on the digital currency platform by issuing a code to their verified customers or send invitation codes to specific customers.
The POS Merchants will assist the banks to drive the penetration rate of the digital currency, but persons without bank records won’t have access to the eNaira.
Aside from bank to customer exchange, there will be a peer-to-peer transaction with the eNaira, and users will not be charged for user-to-merchant transactions and P2P wallet transactions.
Meanwhile, the eNaira will not serve as a store of value for users, as it will be a form of payment, neither will it bear interest for holders like Bitcoin, Ethereum and other cryptocurrencies.
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