E-Naira: CBN to launches Nigeria’s digital currency

[amishmanish]

The electronic versions of Fiat money are useful to banking providers as they can afford to reduce their service costs for ATM transfers etc. Digital money also makes it simpler to track transactions by the middle class. Its a non-brainer that the entry barrier to anything digital is quite high as it needs a certain degree of comfort with technology, which everybody may not have. This is why it always surprises me when countries actively try to push CBDCs.

They are utterly useless for a developing country with huge population like Nigeria. A lot of times these are pet projects of politicians/ officials who want to appear as tech-savvy and doing something "digital". One thing that may happen is that exchanges like Binance can start supporting this electronic version. It'd be straight forward for the governments to then keep a tab on the people trading through these exchanges. Every government has a structure similar to IRS which wants to maximize tax returns. These officials can use the information to actually pin-point users who are into cryptocurrencies.

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[Vishnu.Reang]

The electronic versions of Fiat money are useful to banking providers as they can afford to reduce their service costs for ATM transfers etc. Digital money also makes it simpler to track transactions by the middle class. Its a non-brainer that the entry barrier to anything digital is quite high as it needs a certain degree of comfort with technology, which everybody may not have. This is why it always surprises me when countries actively try to push CBDCs.

They are utterly useless for a developing country with huge population like Nigeria. A lot of times these are pet projects of politicians/ officials who want to appear as tech-savvy and doing something "digital". One thing that may happen is that exchanges like Binance can start supporting this electronic version. It'd be straight forward for the governments to then keep a tab on the people trading through these exchanges. Every government has a structure similar to IRS which wants to maximize tax returns. These officials can use the information to actually pin-point users who are into cryptocurrencies.

We already have "electronic version of the fiat money" in the form of PayPal and other online payment mediums. So what is the need for CBDC? Fiat already exist in digital/electronic form (although not in crypto format). I don't see any advantage for the CBDCs over already existing digital forms of fiat currency. And even the potential userbase is likely to make up of those who are using electronic fiat formats like PayPal. The governments are hoping that CBDCs will replace cryptocurrencies, but we all know that it is never going to happen.

[Silberman]

Very funny, same Nigerian government that banned cryptocurrency and called it a scam are now trying to create their own digital currency? It would be best for the citizens not to ever accept that crap they are about to dish out, because that digital currency will be useless. If these governments had any good reasoning at all, they would focus more on fixing the economy of the country and reducing the rate of poverty in the country.

This is not a time for them to be talking about digital currency, having a digital currency is not going to bring a solution to the problems in the country, rather it will be another avenue for the corrupt leaders of the country to even launder more money. And moreover the Nigerian government has shown that they have no clue on how to run a digital currency by having no understanding of what cryptocurrency is all about. So Nigerians should say no to this E-Naira the same way that their government said no to Bitcoin.

It may seem ironic but it is not, they are making use of the proverb, ‘if you cannot beat them join them’ however instead of accepting bitcoin and other cryptocurrencies as the proverb would imply what they are going is to try to deceive people into accepting their useless cryptocurrency, do I think that some people will fall for this? Yes, but I do not think the majority will as they know that bitcoin is not controlled by any state and that is exactly what they are looking for.

[BIT-BENDER]

There is no need to pay attention to what this government says about crypto because it is clear what their intentions are, they are trying so hard to discredit btc - crypto in general and at the same time introduce their digital currency to the people, I guess the future will determine which digital currency the people will accept and which to ignore as long as the didn't result to forcing it on their citizens.

My thoughts about it also is that as a nigerian I have come to never believe in the politics of government, especially that of my country, so about the CBN and their digital asset all this are politics and I don't care about politicians playing their dirty games, a country that has an issue with crypto-currency now trying to create a digital asset is a bold political game, when their first attack on Crypto-currency with a ban didn't do much now they want to infiltrate the crypto-currency world, but it's to bad crypto-currency is not a game for politicians.

[Bollexz1]

Also the government should have work on setting the economy to stability and put in place strategies to alleviate hunger and poverty which could be one of the means to lessen social vises, much is expected to come along with the launch of the E-Naira as part of the Independence day celebration.

It's all a lie. They put a stop to Bitcoin and other crypto transactions back in February basically because they realized lot of  people had deviated from keeping their hard earned money in the banks,so they don't get to make money from customers saved money like they used to.

I expect them to have pursuit the experience of digital currency of Cryptocurrency adoption and study how it operate within a time frame of three years at minimum before deciding on how to improve the digital currency by launching E-Naira.

The E-naira is just a pro version to Naira (Fiat Currency). I can bet they got no idea on how the blockchain works.

[Sithara007]

The E-naira is just a pro version to Naira (Fiat Currency). I can bet they got no idea on how the blockchain works.

They don't need to. They will just outsource the job to someone who is more competent. For the governments around the world, CBDC represents an unique opportunity to print money out of thin air. And the best part is that there are no expenses involved with this step. If they want to print fiat currency, then there are costs involved, in the form of printing. But here, all they need to do is to write a few lines of code. I am OK with all this, as long as they don't force us to abandon cryptocurrency. But in case the Nigerian government follow what China did (banning crypto, in order to promote the e-CNY), then it is going to be bad.

[SoeNan89]

The Central Bank of Nigeria (CBN) announced that it will introduce the country's official digital currency. More than a month later, the apex bank has released an update on e- recently sent a presentation to a Nigerian bank on the e-Naira project, revealing more details about its design and operational modules. The presentation explains how the new currency will be designed and operated.

[Anguwa]

The Nigerian Economic situation is somehow not stable, lunching E Naira might give legalization and proper trading partern to Nigerian citizens. The presence of E Naira might make things easy for Nigerians that are really interested in cryptocurrencies to feel a bit free as the government restriction over cryptocurrency might have less pressure and there will legalization of cryptocurrency.

[CryptopreneurBrainboss]

There's a chance there will be no launch of a nigerian CBDC at all as venezuela did with their promised CBDC the petro.

I was hoping on that as well because our manual banking system has yet to be perfected and now the government want to go digital when the local digital banks transactions are always experiencing some discomfort. Irrespective of all the reason why this initiative of theirs won't work, seems the government are convince it will work because they're seriously preparing;

NEW TOPIC: Nigeria's eNaira Platform Records One Million Hits Ahead Of October Launch

To me I will employ the government to consider adopting Cryptocurrency first along side with the launch of it digital currency (E-Naira) and the citizens will decide the best and convinient choice,

You speak as if you're not from this region and don't know how things are done here. We're yet to decide who'll lead us as the election aren't always fair and yet you think the government will give you such choice. They're already developing a plans to force everyone into using their fake Bitcoin and painting Bitcoin bad will be a part of their plans.

We should be expecting strong crackdown on Bitcoin and cryptocurency activities general in the near future because it's coming. The did it with banning twitter you think others will be any challenge.

[Charles-Tim]

They're already developing a plans to force everyone into using their fake Bitcoin and painting Bitcoin bad will be a part of their plans.

People like the CBN president and EFCC chairman are painting bitcoin bad because of the e-naira pilot which is set to be on Oct 1, but I do not think it will get to the extent people will be forced not to use bitcoin and other decentralized currencies like in China.

We should be expecting strong crackdown on Bitcoin and cryptocurency activities general in the near future because it's coming. The did it with banning twitter you think others will be any challenge.

Many bodies including governmental bodies in Nigeria want cryptocurrencies to be regulated even including the SEC unlike the CBN. If cryptocurrencies will be regulated, the government will support it including the Central Bank of Nigeria. This remains to the legislative arm of government in the country. Nigeria is not like China to some extent, China do not like decentralization and what are coming from outside of their country. What I see is either the CBN will continue to mislead Nigeria in a way the government will not be able benefit the benefit it should be enjoying from Nigeria crypto users, or cryptocurrencies will later be regulated in Nigeria. I can be wrong, but just based on what I have been reading from news and what I think would likely happen.

[CryptopreneurBrainboss]

People like the CBN president and EFCC chairman are painting bitcoin bad because of the e-naira pilot which is set to be on Oct 1, but I do not think it will get to the extent people will be forced not to use bitcoin and other decentralized currencies like in China.

Aren't the citizens been forced not to buy foreign currency already, don't underestimate the length the government will go to make their little project a success. All their decision of recent has been something we couldn't have taught the government could do. As an enthusiast I'm not wishing bad for the cryptocurency industry in the country but not been optimistic as well because the words of the governments can't be held accountable. They can just switch off especially if the e-naira fails.

I can be wrong, but just based on what I have been reading from news and what I think would likely happen.

I hope to be wrong as well because what I foresee coming will be a disaster, Nigerian isn't china but we can turn to one in the nearest future if things aren't corrected now. We already have alliances, who knows what they're teaching our government not forgetting we're in debt to them. We banned importation of some goods last year, they added restrictions on social media and also crackdown on foreign currency, who knows what next...

[Nathrixxx]

In a bid to mark the Independence day with the lauch of the E-Naira digital currency eNaira website goes live, displays CBN digital currency features With all indications, the E-Naira talk is becoming a reality, but the question in place still remains "will E-Naira launch be a game changer to the country's economy system".

[tippytoes]

In a bid to mark the Independence day with the lauch of the E-Naira digital currency eNaira website goes live, displays CBN digital currency features With all indications, the E-Naira talk is becoming a reality, but the question in place still remains "will E-Naira launch be a game changer to the country's economy system".

That can be seen in the next coming months or years. Hard to speculate this early as you have no idea about their citizens' approach on this matter. Will it be easy on them in accepting this digital currency? The adoption may take time but we will see if there will be an impact maybe at least after 6 months of implementation. The world is going digital these days, so this may help them in adopting a digital market.

[Kyraishi]

Lol, this has been happening across the world for quite some time now.

Every single government is trying to/going to be try to push their own crypto whilst rejecting the decentralized alternative.

Is that going to affect BTC and other cryptos in any way? No. There is no way that they can "force" individuals to adopt the CBDC over the decentralized alternative.

[adzino]

I have heard how Nigeria started to put a ban on crypto currency transactions. Didn't they start to block all bank accounts of users that had dealt or has a transaction associated with crypto currencies? And is this why Nigeria started to ban bitcoin transactions? Just like what China is doing. Bring their own currency. Start banning their competitors.
Sad to see that to be honest. Is E-Naira actually going to be a crypto currency?

[Charles-Tim]

Didn't they start to block all bank accounts of users that had dealt or has a transaction associated with crypto currencies?

CBN did

And is this why Nigeria started to ban bitcoin transactions?

Nigeria did not ban cryptocurrencies, CBN did. CBN also created e-naira, so likely the reason.

Is E-Naira actually going to be a crypto currency?

Yes, but a CBDC, not decentralized, highly centralized and require KYC.

[Sithara007]

Nigeria did not ban cryptocurrencies, CBN did. CBN also created e-naira, so likely the reason.

CBN is run by the government. So what is the difference? From what I understood, there was a banking ban imposed by the CBN. Bank accounts can't be used to buy or sell cryptocurrency (which was removed later). The possession of cryptocurrency, or trading it for physical cash or some other crypto was never made illegal in Nigeria. The situation is similar to what we had in India from 2018 to 2020. Back then the central bank, Reserve Bank of India (RBI) had imposed a banking ban on cryptocurrency transactions. It was struck down by the supreme court in 2020.

[Kong Hey Pakboy]

Is that going to affect BTC and other cryptos in any way? No. There is no way that they can "force" individuals to adopt the CBDC over the decentralized alternative.

I think it's going to affect bitcoin, didn't China made an example already, they've banned crypto mining and transactions already so they can make way for their own cryptocurrency or should I say digital currency. They can force people adoption, China has done this with electric cars, they're making it difficult for other people that don't have electric cars to register theirs compared to someone with an electric car that only takes a day or two to be registered.

[Charles-Tim]

CBN is run by the government. So what is the difference? From what I understood, there was a banking ban imposed by the CBN.

Some people were panic at the time while only few knew that CBN can not do more than making direct bank-crypto transactions to be illegal,  CBN have no power to ban cryptocurrencies in a nation, the legislative arm are the ones that is capable while some people do not know how this is. The CBN president had to later have to take to media that people can use cryptocurrencies that only direct bank transactions from crypto companies were banned.

Yes, exactly like what happened in India, just like you explained. There are organizations that are openly declearing that they accept cryptocurrencies in Nigeria while some even are advertising it on TV channels in Nigeria.

[CryptopreneurBrainboss]

As expected, there has been some twist, the government are getting sues and this might delay the launching of the e-naira on October 1st which is just few days ahead. This recent development got me wondering whether the government didn't do their due diligence before choosing the name eNaira or all this was just a plan to delay the project when it's about launching. Why is the lawsuit coming now and not earlier, could this be some excuse technique to not launch the project.

ENaira Payment Solutions Limited, a company, has instituted a suit before a federal high court against the Central Bank of Nigeria over the name “eNaira.”

The firm, through its lawyers, accused the CBN of trademark infringement.

This is according to a document issued by Olakunle Agbebi & Co, solicitors to ENAIRA Payment Solutions Limited, notifying the CBN to desist from using the proposed name.