All you need to know about Nigeria’s digital currency ‘enaira’ – The Street Journal

Following the official launch of the enaira application by President Muhamadu Buhari on Monday, 25 October, the Central Bank of Nigeria (CBN) has released a series of useful information for interested users.

According to the CBN, the website ‘[email protected]’ and email ‘[email protected]’ can be used to resolve failed transactions or raise inquiries.

Find out important facts about what the digital currency entails, according to the apex bank itself.

What is eNaira?

The enaira is a CBN digital currency (CBDC) issued by the CBN as a legal tender. It is the digital form of the naira and will be used just like cash

What is an eNaira wallet?

The eNaira wallet is a digital storage that holds the eNaira. It is held and managed on a distributed ledger. The eNaira wallet is required to access, hold and use eNaira.

Is eNaira a cryptocurrency?

No, it is not. The eNaira is a legal tender backed by law, the full sovereignty of Nigeria, and issued by the Central Bank of Nigeria, while cryptocurrencies are private digital currencies, not backed by law, underlying assets, or by the sovereignty of any nation. They are
not legal tender currencies.

The eNaira is a unit of account, store of value, and medium of exchange, cryptocurrencies do not have all these qualities.

What makes eNaira different from the money a bank account?

The eNaira is a digital form of cash and is a direct liability on the CBN while, the customer deposits are direct liabilities on the financial institutions. The eNaira transactions are direct transfers while transacting.

What is an eNaira wallet?

The eNaira wallet is a digital storage that holds the eNaira. It is held and managed on a distributed ledger. The eNaira wallet is required to access, hold and use eNaira.

Is there a difference between an online bank transaction and eNaira wallet?

For the typical online bank transaction, there are intermediaries whereas, for eNaira transactions, there are no intermediaries.

What are the benefits of eNaira?

• Fast, cheap, reliable, and available payment channels.
• Support digital economy.
• Improved economic activities.
• Simplified and easy cross-border payments and trade.
• Inclusion of excluded people in the financial system.
• Improved effectiveness of monetary policies.
• Ease in tax remittance and collection to support the Country’s growth.
• Ease in targeted social interventions to support Nigerians

What is the primary role of the CBN with respect to eNaira?

In line with Section 2 of the CBN Act 2007, the CBN is the issuing authority of all forms of Naira. The Central bank will also be responsible for determining the technical, regulatory, and operational standards for eNaira, to guide financial institutions.

Will eNaira replace cash?

No, it will circulate alongside cash. The eNaira will complement cash as a less costly, more efficient, generally accepted, safe, and trusted means of payment.

Is eNaira safe?

The eNaira is safe and secured with cryptographic techniques against counterfeiting, cloning, and other forms of attack.

Is there data privacy for users of eNaira?

Similar to the privacy enjoyed by current online banking patrons, the eNaira system has been designed to ensure data and user privacy. There are also operational policies and procedures in place to protect users’ identity 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 can one access eNaira application?

• Customers will be able to access eNaira via the eNaira wallet in app stores such
as the Google Play Store and the Apple App Store.

• Users can also dial a USSD short code and follow the required steps to perform
transactions.

How do I connect my eNaira wallet to my bank account?

The eNaira app allows customers to identify a bank of their choice, connect to their bank accounts, and perform transactions.

How do I reset my password?

You can also reset your password within the App by navigating the settings menu.

Why should businesses operate the eNaira wallet?

• Instant settlement.
• 99.9% service availability and reliability.
• Low charges.
• No dispensing errors.
• No reconciliation issues

Why should an individual download and fund the eNaira wallet?

• 99.9% service availability.
• Low charges.
• Nationwide acceptance.
• No dispensing errors.
• Advanced data privacy and security.

How can eNaira be tranfered into an eNaira wallet?

• Direct transfer from your bank account
• Transfer from another wallet either individual or merchant;
• Cash payment through an agent or a bank.

 

 

 

 

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