Nigeria Prepares To Launch Digital Currency eNaira On Monday

Nigeria Prepares To Launch Digital Currency eNaira On Monday

The President of Nigeria, Muhammadu Buhari, will formally unveil the much anticipated Central Bank Digital Currency (CBDC), known as the eNaira, on Monday 25th, October 2021, at the State House in Abuja.

The Central Bank of Nigeria (CBN) first announced the eNaira in June 2021. This was after they had previously banned banks and financial institutions from facilitating crypto transactions.

The CBN partnered with Bitt Inc, a Barbados-based fintech startup, to help create the digital currency.

Central Bank Of Nigeria Postpones CBDC Rollout

The launch of the eNaira had originally been set for early October for the 61st anniversary of Nigeria’s independence on October 1. However, the Central Bank of Nigeria failed to roll out its CBDC on that date. The authority later released a document titled “The Design Paper for the E-naira”. Here, it reemphasizes its commitment to launching the e-naira. It also states that it is now ready to launch its CBDC.

While downplaying the implications of failing to launch as planned, the CBN highlights the importance of getting things right the first time. And how this will guarantee the eNaira’s success in the long run.

“While the launch of the e-naira is an important event, it is one milestone on a long journey. The e-naira is a process, not a single step. Over time, the CBN believes the robust ecosystems that will be built on the e-naira platform will ensure Nigeria and Nigerians receive all the benefits from the e-naira.”

eNaira To Finally Launch

The Central Bank of Nigeria is finally ready to launch its digital currency. On Saturday, the authority released a statement to this effect.

In the statement, it described the launch of the eNaira as “a culmination of several years of research work by the Central Bank of Nigeria in advancing the boundaries of payments system to make financial transactions easier and seamless for every strata of the society.”

It further says that the unveiling marks the first step in eNaira’s journey. It will subsequently go through a series of additional modifications, capabilities, and enhancements.

The CBN pledges to continue working with relevant partners to ensure a seamless process that will benefit every user. In particular, those in the rural areas and the unbanked population. The authority also states that they have put together a structure to promptly address any issue that might arise from the pilot implementation of the eNaira, seeing as it is a new product, and amongst the first CBDCs in the world.

According to the eNaira website, the digital currency will come with a wallet sanctioned by the CBN. Users can either link to their bank accounts or pay as they go with a prepay option.

The purpose of the eNaira is to complement the physical Naira rather than replace it.

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