eNaira; 10 Amazing Facts About Nigeria’s New Digital Currency.

eNaira is a digital currency introduced by the Central bank of Nigeria. In today’s society, electronic currencies have grown in popularity. The popularity of electronic currencies such as Bitcoin, and others has increased becoming almost impossible to stop. Governments all over the world have begun to contemplate creating their own digital currencies.

The Central Bank of Nigeria recently prohibited the use of cryptocurrency in the country. The bank then followed up the ban with the launch of what may be referred to as its own type of crypto money being the eNaira. The Central Bank of Nigeria (CBN) recently revealed plans to develop its own digital currency, the eNaira which will be Lunched on the 1st of October 2021.

1. What is eNaira?

The CBN’s first suggested digital currency was Named eNaira. The new currency will not be a replacement for the physical Naira, but rather a digital representation of it.

On Monday, the website for Nigeria’s digital currency, eNaira, went live.

This comes just days before its official launch on October 1st, as previously announced by the governor of the Central Bank of Nigeria, Godwin Emefiele.

See also CBN To introduce Digital Currency Soon.

According to the site’s welcome message, the eNaira is a digital currency issued by the Central Bank of Nigeria that provides a unique form of money denominated in Naira.

“eNaira serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments. eNaira has an exclusive operational structure that is both remarkable and nothing like other forms of central bank money,”the note says.

“There are several benefits from a central bank-issued digital currency in Nigeria, and this cuts across different sectors of, and concerns of the economy.”

2. Who Developed the eNaira?

The technology behind the It is being created by Bitt Inc., a Barbados-based fintech business, with the CBN owning a controlling interest in the company once it is incorporated in Nigeria.

See also Abuse the Naira and Risk going to jail – CBN

Mr Emefiele stated that the CBN went through a “rigorous” vendor selection procedure, and Bitt emerged in first place with an average of 82.3% outperforming the other five bidders.

He stated that beginning October 1, Nigerians will be able to download the eNaira program from either the Google Play or Apple App Store.

3. When will the eNaira be Lunched?

The Central Bank of Nigeria (CBN) has announced that a trial scheme for the eNaira will begin on October 1st, 2021.

It is still unknown how the CBN will carry out the launch and who will have immediate access to the new currency.

According to the Governor of central Bank Godwin Emefiele, Nigerians will be able to download the eNaira app from either the Google Play or Apple App Store from October 1st 2021.

“They should be able to find their wallets using their bank accounts and conduct transactions such as transfers and purchases at merchant outlets that have boarded to the platform,” he said in an interview.

4. What is eNaira Wallet?

The eNaira wallet is a digital wallet that stores eNaira. The CBN said they wallet is held and managed on a distributed ledger. To access, hold, and use eNaira, an eNaira wallet is necessary.

5. What Makes eNaira Different From the money in my bank Account?

The digital currency eNaira is a direct liability of the Central Bank of Nigeria, whereas customer deposits are direct liabilities of financial institutions.

However, the eNaira will have the same value as the physical naira. As such, it will be exchanged one to one.

6. Is eNaira the same thing as Bitcoin?

Bitcoin and eNaira are both digital currencies, but they are not the same in many aspects;

• Unlike Bitcoin, which is a cryptocurrency, the eNaira is a government-issued digital currency.This disparity has a significant impact on the currency’s stability.
• The bitcoin isn’t controlled nor backed by any government, it’s just floating, but the eNaira will be backed by the Central bank of Nigeria.
• The eNaira, for example, will retain the same value as the Naira. As a result, its value will not fluctuate in the same way that Bitcoin does, implying that it is not a good investment.The eNaira simply makes it easy to conduct transactions online without the need for cash.
• While the bitcoin was mined and is still being mined, there would be nothing like mining the eNaira. Everyone would be able to receive an amount of eNaira by paying for it in Naira.

7. How are eNaira wallets created?

Download the eNaira app (called “Speed”) from the Google Play Store or the Apple Store and finish the registration process.
Use USSD codes and follow the registration prompts for feature phone users ie phones that are not either android nor Iphones.

8. Is eNaira Wallet Safe?

According to the Central bank of Nigeria, the eNaira wallet is very safe. In a statement on the eNaira website, the CBN said “The eNaira system uses a two-factor authentication system in addition to cryptographic encryption to ensure the safety of customers’ wallets and the eNaira holding”.

9. How will the eNaira work?

The eNaira will function as a digital version to the actual Naira.

The CBN-licensed financial institutions will be in charge of ID verification, eNaira payment processing, and the creation of wallets for users to store their eNaira.

The eNaira wallet is identical to and formed in the same manner as a bank account; however, it will be a separate account that is not linked to an already existing bank account.

Transactions will be possible between two people that have both downloaded the eNaira wallet, which allows you to store, transfer, and receive eNaira.

10. How will the eNaira benefit the users?

The CBN, believes that the eNaira will significantly increase financial inclusion, payment processing, and tax collection, among other things.

The eNaira is also intended to boost cross-border trade, which could benefit the Nigerian economy.

The eNaira will reduce the rigorous stresses usually encountered in Nigerian banks and banking system. eNaira would offer Nigerians and Nigerian business;

• 99.9% service availability.
• Low charges.
• Nationwide acceptance.
• No dispensing errors.
• Advanced data privacy and security.