The eNaira website is now live! The main webpage for Nigeria’s central bank digital currency (CBDC) went live on Sept. 27, earlier than the scheduled rollout date. So, what should we expect?
The Central Bank of Nigeria (CBN) and eNaira
Through the information technology director, Rakiya Mohammed, CBN had announced that the bank intends to roll out the country’s CBDC by Oct. 1. This digital currency will be issued and regulated by the CBN.
Before the official date, the eNaira site is now up in preparation for the kickoff next month. According to the site, eNaira is “a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira.” It “serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments.”
How did Nigeria get here?
Financial officials in the country have been grappling with the rise of crypto trading in Nigeria. Because of this, the CBN has issued several regulations and had issued a circular a few months ago to all non-bank financial institutions, deposit money banks, and other financial institutions advising them to close bank accounts held by cryptocurrency service providers.
This ban forced some Nigerian Fintech companies to deactivate their accounts. However, some crypto trading platforms, such as Luno, are trying to get back.
The introduction of CBDC by the financial regulators is seen as a strategy to control the increase in popularity of other top cryptocurrencies in the country.
While CBN claims the eNaira will foster economic growth, limit fraudulent behavior, provide cheaper remittances, accelerate financial inclusion, and have stronger security, it could give the central bank more control over crypto trading in Nigeria.
