eNaira: What You Should Know About Digital Naira Before Oct 1

  • The eNaira will be launched on October 1, 2021, being Nigeria’s 61 Independence celebration.

Welcome to the era of digital currency CBDC. The digital version of the Naira is launching in Abuja, Lagos, Port Harcourt, and Kano by the CBN and this is coming after the crypto and Twitter ban. So, what does it mean for you? Well for starters, it means you will be able to send and receive the eNaira.

Who Developed The Digital Naira?

The Central Bank of Nigeria (CBN) has announced the formal engagement of the global Fintech company, Bitt Inc., as the Technical Partner for the digital currency.

How Does eNaira Work?

Like any digital currency, you will need an electronic wallet to receive, hold and send is secure, which is basically an app you will download on your phone.

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For the pilot phase as the CBN is calling it, the banks will handle the process, probably with a selected group of tech-savvy early adopters customers.

An invitation code will be sent to you from your bank, that’s if you are selected. You will be directed to a website or an app store if you are on iPhone or iPad or to play store to download your wallet app.

Once your app is downloaded, enter the invitation code. If valid, you will proceed to register, set password, BVN, Email, Phone number, get verified, and your eNaira is created.

Simple!

How To Fund eNaira Wallet

Now you have a wallet, what next? Top up of course

You can receive eNaira from another eNaira holder from their wallet, or you can transfer from your bank account to your eNaira wallet. That is; credit your wallet from your bank app, the bank that invited you, or a different bank. All that is possible.

For example, if Fidelity bank sent you an invite to set up your eNaira wallet, you can use your Access bank account to transfer some Naira to an eNaira wallet or you can use your GTB bank app to transfer to your eNaira wallet with Fidelity bank. Either way, you get your eNaira.

How To Spend It

You can spend your digital Naira through wallet-to-wallet transfer, wallet to bank account transfer within the same bank or outside with another bank, in which case you will enter the bank account then initiate a transfer. But eNaira to cash withdrawals is not allowed.

You can’t just go to the ATM and start withdrawing cash from your wallet, it is a digital economy, hence, cashless. On the other hand, you can convert your cash to eNaira. Take it to a registered agent or to your bank branch and they will credit your digital Naira wallet with the amount you deposited.

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Expect borage of campaigns and ads in the time running up to October 1. Individuals, merchants, businesses, government institutions will be onboarded to the digital currency platform to test run and possibly give feedback to strengthen the system before the next stage of the rollout.

eNaira is here to usher in the new digital era to facilitate payments. Person to person, business to business, person to business, and person to the government.

Talking about government, expect that all your payment between you and the government will be full with the eNaira in stages henceforth. I’m talking about government salaries, insurance, passport, driver’s license registrations and renewals, utility bills, and all other payments that involve you and the government and service providers.

Exciting times ahead.

I personally think that this digital currency is much more than money and payments. It’s going to be a platform where other businesses will strive on, especially in the fintech industry. If you look at the underlying technology powering the whole process.

It is going to be much easy to access funds, make payments and more importantly, control the financial sector, especially when it comes to foreign exchange. You will be seeing a lot of products coming out based on the digital Naira, very innovative products.

Digital books, eCommerce, import and exports, financial derivatives, and all kinds of innovations can be built on this system.

Difference Between eNaira and Cryptocurrency

I know you will be asking if this is different from cryptocurrency.

Central bank digital currency, CBDC has some similarities as well as differences from cryptocurrencies but you won’t see most of that from the name. They are similar in the underlying technology, both are digital and based on the blockchain, a highly secured database in which all transactions are stored.

The main difference though is that CBDCs are permission by a central authority and issued into existence while cryptocurrencies are permissionless (meaning they are public and mined into existence), meaning they are created cryptographically.

That’s just it. Any other explanation is just like icing on the cake.

Both currencies are networks of platforms where digital assets like money, currencies can be exchanged securely, on top of which other derivative assets can be built. Securely here is because of the blockchain, a ledger protected by cryptography.

All other benefits are cherry on the pie. Like fast transactions and cheaper processing. So, what do you think about this new innovation?

Let’s hear from you.

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The Author

tori4town

Tori4Town is the print name for one of the authors of the Tori4Town news platform. An engineering student who derives satisfaction writing about trending news stories.

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