Why e-naira is different, better than other cryptocurrencies – CBN

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The Central Bank of Nigeria (CBN) has given three reasons why the soon to be launched e-naira is different and better than other types of cryptocurrencies.

CBN in a message through its Director, Information and Technology, Rakitya Muhammed said the introduction of the e-naira from October 1, can catalyse Nigeria’s digital economy, and boost cross border trade.

Muhammed who spoke virtually at the Third Quarter Industry Forum of the Committee of E-business Industry Heads on Wednesday, also added that the e-naira will provide more data to the government to formulate better macroeconomic policies.

READ ALSOSix things to know about CBN’s digital currency, E-Naira effective October 1

Her presentation titled ‘Digital Currency and the Prospects of Central Bank Digital Currency in Nigeria,’ also stated that the e-naira would further help the value of the fait naira.

“Unlike other cryptocurrencies, the e-naira design will be a legal tender just like cash.

“One e-naira will be equal to one fiat naira, and we adopted a two-tier retail model that would be a lot less disruption into the financial system.

“Our banks, payment service providers and fintech are all going to be onboard and we are going to key into the infrastructure they already have and incorporate the new system.

“It is not meant to replace the cash I have only to supplement,” Muhammed said.

She also noted that there will be faster exchange of currencies when countries come on board and create their own digital currencies which might be able to boost cross border trade at a much lower cost.

She said, “Of course payment efficiency, even though we know that Nigeria has one of the best payment systems in the world, we will still be able to improve on that.

“We believe that the e-naira will be a catalyst for the digital economy because the people who are outside the formal banking sector will be integrated.”

Muhammed also disclosed that the design for e-naira would be revealed soon.