E-Naira, a digital currency, will be launched on Monday, October 25th by the CBN.
The Central Bank of Nigeria (CBN) held a crucial meeting today to put finishing touches ahead of the Monday launch of the E-Naira, a digital currency
The meeting, which had top officials of the bank in attendance, brainstormed on possible challenges that might affect the launch of the E-Naira ahead of the Monday launch.
According to the Peoples Gazette, among those present at the meeting were the CBN Governor Godwin Emefiele and executives from the apex bank’s monetary policy, operations compliance, corporate communications and other departments.
The newspaper said the meeting was to put final touches on the E-Naira ahead of the launch on Monday, after criticisms that trailed the suspension of the initial launch on October 1.
Nigerians had expressed optimism the E-Naira digital currency would be launched on October 1, before CBN announced its suspension hours before Independence Day celebration.
Spokesperson for the CBN, Osita Nwanisobi, had at the time said the suspension of the E-Naira launch was to allow other events slated for the day to take place.
The CBN had earlier listed benefits of the E-Naira to include cross-border trade facilitation, financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social interventions.
About E-Naira
The eNaira will be an electronic version of the local paper naira currency, equal in value and issued by the Central Bank of Nigeria. It is not intended to replace cash but will function as a safe and efficient alternative means of payment.
How safe is the e-Naira? (culled from Nairametrics)
Think of the e-Naira in this way; you want to send N100 to an uncle in a remote village without a bank branch. A common practice is to buy mobile phone recharge cards of that value, load them to your phone, and text your uncle. Your uncle can then go to any phone card retailer and discount his N100 mobile phone credit for N95. The mobile retailer can redeem the call credits and pay cash because he trusts the person doing the exchange; however, he cannot tell if the mobile numbers are real.
The eNaira is designed to solve this verification risk by assuring all holders that each eNaira is a valid token. This authenticity is achieved by building the eNaira on the blockchain. Thus instead of buying phone credits, I will debit my bank account for N100, convert to eNaira, and transfer it to my uncle. My uncle can spend the funds directly from his phone or transfer and get cash. Every retailer is more likely to accept the eNaira because it can’t be easily faked.