In a report presented by Bloomberg, the government of Nigeria has decided to launch its CBDC on 25th October Monday. The CBDC, dubbed as eNaria, is not there to replace the physical currency of Nigeria but is there to compliment it.
According to the report, the eNaira will “make financial transactions easier and seamless for every strata of the society.” This means that the goal is not to defeat the existing currency system but rather to integrate the digital currency into the existing system.
Nigeria will be one of the pioneering countries to actually integrate CBDC in the financial structure of the nation. The launch of eNaira was expected to take place on the 61st independence day of the nation, between 1st and 4th October. However, the launched was delayed.
Nigeria Central Bank (CBN) to release wallet too
In their statement, the country’s regulatory authority said that with the eNaira, the bank would also release a wallet that can be integrated into the individual bank account of a person. This will make the transfers of funds way easier and trustworthy for the people.
The wallet sanctioned by the CBN can also be used through the prepay option, making the payment structure way easier for a person, allowing them to pay as they go. It seems that the government has planned to release the three-tier consumer “speed wallet” for both the unbanked and the banked.
For the people with no bank accounts, the limit for each transaction will be set at ₦50,000 ($100) while they can own ₦300,000 ($600) altogether in the wallet. However, the customers with bank accounts will have the privilege of owning higher amounts in the bank, and transfer limits will be set higher.
The Central Bank of Nigeria has formed an alliance with Fintech company Bitt Inc., as the Technical Partner, enabling the firm to use its technical prowess for better integration of the eNaira.