Nigerians Prepare for CBN’s eNaira, Expected to Revolutionise the Country’s Payment System

The Central Bank Digital Currency (CBDC) eNaira, will be fully operational as legal tender in the country from October. According to CBN, eNaira will function as the digital version of the Naira and will be used in the same manner as the physical currency.

However, many Nigerians are still unsure about what to anticipate and how to participate. Here are all the answers to all your eNaira queries.

What makes eNaira different from the money in my bank account?

eNaira in the coming months will serve as the digital equivalent of cash. Just as the paper currency CBN digital currency is a direct obligation of the Central Bank of Nigeria, while deposits are direct liabilities of financial institutions.

How Will eNaira work?

Upon registration, users will be asked to create a wallet ID. The eWallet will serve as a store which can only be access with a unique password from which you can execute transactions. It is crucial to note that no matter how long the cash is held in the user’s wallet, it does not accrue interest.

What is the difference between an online bank transaction and an eNaira wallet transaction in a typical transaction?

Online banking serve as intermediaries for conventional online bank transactions, but there are none for eNaira transactions all you do is login access your wallet and make payment. Transactions between two users are free. In fact, there are no fees for withdrawals and deposits to and from users bank account.

How will dollar transfers to e-Naira work?

The e-Naira will be incorporated into the CBN’s FX procedure, making it simpler to send money to Nigeria. Simply, for sending money abroad the CBN credit the International Money Transfer Organization(IMTO) directly. While for a Nigerian living in another country who wishes to send let say $50, to a family member. All to do is walk into bank and credit an IMTO, the sender bank would then buy eNaira from their equivalent Nigerian bank. Immediately, the $50 is promptly changed to e-Naira at a far cheaper transfer charge.

Will eNaira replace cash?

The CBN has repeatedly noted that the eNaira will circulate alongside cash. It will also be less costly, more efficient, safe, and trusted means of payment.

Is eNaira safe?

According to CBN, eNaira is safe and secured with cryptographic techniques against counterfeiting, cloning, and other forms of attack. CBN also promised privacy similar to the current online banking options CBN statement reads: “The eNaira system was created with data and user privacy in mind. In addition, operational standards and procedures are in place to secure users’ identities and privacy.”

Who can access eNaira?

Similar to cash, any person or business can have access to eNaira as long as they have the requirements for onboarding.

What is the exchange rate between eNaira and physical naira?

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

How to get started Get the eNaira app

Type in the bank’s invitation code; Fill in the required identity information (e.g., NIN, BVN, or know your customer (KYC)/anti-money laundering (AML) information, depending on the client tier); Provide further identity information (name, address, date of birth, phone number, passport photo, email address, and password); Validation of the minimum ID Your banking institution notifies you; Create a user account.

Dave Ibemere

Legit

Read more: https://www.legit.ng/1436548-every-question-enaira-answered-including-registration-procedure-launch.