Key Takeaways
- The CBN releases a presentation that details the operations of the eNaira
- The central bank will handle the issuance and distribution of the digital currency
- Banks to play a crucial role in the adoption of the digital currency
Local news outlet Nairametrics in a report on August 29, 2021, revealed the key details in the presentation.
According to the report, the eNaira will be accorded legal tender status within the country.
It also noted that, like the existing fiat currency, the apex bank would have the right to issue, distribute, redeem and destroy the eNaira.
In addition, it will also handle the storage, monitoring, and analyzing transactions made in the digital currency.
Licensed financial institutions like banks will request the eNaira and distribute the currency across branches while following KYC and AML regulations.
Also, merchants will provide management software and POS payment solutions compatible with the CBDC payment system.
The presentation also noted that banks would play a key role in enabling the proper implementation and adoption of the digital currency.
Banks will be able to offer eNaira payment capabilities to customers and initially onboard an initial list of customers that have been validated and verified.
These customers will be provided pre-generated codes and will be able to register for the eNaira.
The CBN also stated that Banks and other financial institutions could create their eNaira wallets and offer a dedicated experience to customers.
It noted that the existing eNaira wallet created was merely a stop-gap measure, and the apex bank did not intend to compete against existing financial institutions.
The presentation concluded that the eNaira was a critical national infrastructure and would be subjected to extensive security checks by the Central Bank.
This latest update from the CBN suggests that the launch of the eNaira is drawing closer.
Do you think the eNaira will be a success or a failure?
