Connect with us

Business

What you should know about Nigeria’s eNaira, as govt to monitor transactions

Published

on

Farmers gets N174.48bn from CBN

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.

Read also: CBN pegs loan limit for rural microfinance banks at N500,000

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.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations