As digital currency continues to gain acceptance and usage across the globe, it has in recent times continuously been a major topic of discussion and dissection among the big global financial players either to adopt or restrict the electronic money.
In this article, we’re not diving elaborately into the global discussion, we will limit our search light on the creation and launching of the E-Naira on Africa’s most populated and largest market.
First of all, what is E-naira? Is the E-naira different from cryptocurrencies?
The E-Naira is a digital currency just like the Chinese digital yuan. Digital currencies are different from cryptocurrencies in the sense that they are issued by the country’s central bank, controlled by the central authority or government.
Unlike the Chinese digital yuan which does not run on its own block chain, rather runs on Wechat and Alipay wallets, the E-naira runs on its own block chain. like the Chinese digital yuan regulated by the Chinese central Bank(CNBC),the E-naira is also controlled and regulated by the Central Bank of Nigeria.
As a legal tender controlled by a central authority, the E-naira has a daily limit transaction of one million naira (#1,000,000.00). The E-naira shall be administered by the CBN through the digital currency system (DCMS) to mint and issue E-naira. The financial institutions shall maintain a treasury E-naira wallet for holding and managing E-naira on the DCMS. Financial institutions (FIs) suite is the primary application used by the FIs to manage their digital currency holdings, requests, and redemption with the CBN. The E-naira stock wallet belongs solely to the CBN and it shall warehouse all minted E-naira, the two factor authentication and other measures shall be adopted to ensure the security of the E-naira wallet. According to the central authority, the charges on the E-naira shall be in line with the guide to charges by Banks, financial and non-Bank financial institutions and shall comply fully with the anti-money laundering ACT.(CBN NEWS)
It has become imperative for all and sundry to take advantage of the revolutions on the Block chain industry as the world currency and transactions have gone digital