Nigeria’s central bank, the Central Bank of Nigeria, has announced that it would be revealing its digital currency, the eNaira, on Monday, according to a report in Bloomberg. The eNaira will be complimenting the physical Naira instead of replacing it.

In a statement, the Central Bank of Nigeria revealed that it hopes that the eNaira will make transactions easier for every strata of society. Nigerian President Muhammadu Buhari will formally unveil the digital currency.

Culmination Of Several Years Of Research

Director of Corporate Communications at the Central Bank of Nigeria, Mr. Osita Nwanisobi, revealed in a statement that the eNaira is the result of the culmination of years of research carried out by the Central Bank.

According to Mr. Nwanisobi, the eNaira would advance the boundaries of payment systems, making financial transactions easier for the people of the country.

“The eNaira, therefore, marks a major step forward in the evolution of money, and the CBN is committed to ensuring that the eNaira, like the physical Naira, is accessible by everyone.”

Details Of The Launch

The eNaira was initially set to be launched between 1st October and 4th October but was delayed in deference with the 61st anniversary of Nigerian independence.

“Following a series of engagements with relevant stakeholders, including the banking community, fintech operators, merchants, and indeed, a cross-section of Nigerians, the CBN designed the digital currency, which shall be activated on Monday, 25th October 2021.”

According to Mr. Nwanisobi, the launch on Monday would further enable the Central Bank of Nigeria to engage with various stakeholders, keeping up with global financial advancements.

Rising Crypto Usage

Authorities and financial regulators in Nigeria have long struggled with the rising use of cryptocurrencies in the African nation. Nigeria had completely banned all cryptocurrency transactions in the banking sector in February before outlining its vision for the eNaira.

Draft Guidelines Sent To Banks

The Central Bank of Nigeria has already sent draft guidelines to all Nigerian banks for the proposed CBDC, the eNaira. The presentation sent to the banks talks about the operational module and the design of the CBDC. The presentation also defines how the new Central Bank Digital Currency is designed and operated, with the eNaira described as legal tender and a non-interest bearing CBDC.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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