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

[Charles-Tim]

But the central bank is still against crypto right? So I don't see how they're going to be beneficial and popular to the crypto community there, if they're trying to make things right for E-Naira, they need to lift their restrictions or do what China did.

Nigeria CBN is doing just as China, to paint decentralized currencies like bitcoin bad while piloting for centralized currencies which is the same as in value as the fiat spent in the country.

I do not see anything special about it too, eNaira is centralized and it is pegged 1-to-1 with naira which is depreciative.

[1714605736]

1714605736

[Fortify]

Well this is a new development on itself to the citizens if all things would have been in place, a saying goes and I quote "experience is the perfect teacher" in a bid to this milestone journey of E-Naira, 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.

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.

The Central Bank of Nigeria (CBN) will launch a digital currency, e-Naira in October to coincide with the nation’s independence anniversary.

The apex bank chief urged Nigerians to embrace the e-Naira and explained it is safer than cryptocurrencies.

Digital currency is the electronic form of fiat money issued by governments.

he central bank of a country supervises digital currency. Cryptocurrencies are not regulated by any government, reason why authorities warn against bitcoin, ethereum and the likes.

The e-Naira would only exist in digital and electronic form. Individuals and financial institutions can track transactions easier.

e-Naira local and international transfers can be made within a little time and at cheaper rates. It simplifies cross-border trade and guarantees a faster inflow of remittances.

All these are fictions not base on fact, Cryptocurrency had reasonable answers to them all:
1. Cryptocurrency isn't a scam or fraudulent scheme of digital currency, it has reliable exchanges that operate and more secured than Fiat banks

2. Talking about digital Fiat currency, it involve a third party transactions and the charges are much unregulated, while crypto is lesser on transaction fee, faster and it's only a peer to peer exchange with no third party, example is when you go the market and made purchase, you don't need a third party to intermediate between you and the seller, you buy directly.

3. The word regulated in this context is been misinterpreted for tax and exuberant charges, any third party transaction is incomparable to a peer to peer one, a decentralized market has more adge then the government control system of Fiat, where you get to the bank for KYÇ related issues, time delay with excessive charges on transaction operations and services rendered while you can do these all by yourself in Cryptocurrency.

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, the teaming youths where in perplex towards the new launch but it would have been so good if Cryptocurrency adoption goes along with it.

To be honest Nigeria has a lot of other problems that need solving before people can trust it enough to run a competent cryptocurrency system. There is little need for yet another altcoin and it might be vulnerable to outside manipulation because it does not have the scale to thwart attacks. It would have been much better to simply focus on building a competitive crypto exchange that allowed people to store and withdraw funds, without trying to cash in on a new clone. I have a feeling that this will fade into obscurity, however the original founders will obviously cash out a portion as soon as it is available. Unfortunately the government in this country has a long way to go before it is trusted to manage such a program.

[Sithara007]

To be honest Nigeria has a lot of other problems that need solving before people can trust it enough to run a competent cryptocurrency system. There is little need for yet another altcoin and it might be vulnerable to outside manipulation because it does not have the scale to thwart attacks. It would have been much better to simply focus on building a competitive crypto exchange that allowed people to store and withdraw funds, without trying to cash in on a new clone. I have a feeling that this will fade into obscurity, however the original founders will obviously cash out a portion as soon as it is available. Unfortunately the government in this country has a long way to go before it is trusted to manage such a program.

They could have just followed the example set by El Salvador. Millions of Nigerians are working as expats abroad, and they face crippling commissions while sending remittance payments back home (5% to 15% of the total amount). If the government think that they'll just use e-NGN all of a sudden, then they're mistaken. Despite hard push by the Chinese government, the e-CNY (CBDC from China) is yet to make any progress on its goal of replacing Bitcoin. And the Nigerian government can't even afford to take the steps which are taken by the Chinese dictatorship, which dims the prospects of e-NGN even further.

[Alisha-k]

I feel like this was to be the case with pretty much any place where the crypto or bitcoin is widely used, we saw that china has progressively banned bitcoin and that is to launch their own version of crypto currency and new we are seeing a place like Nigeria where the CB is trying to make their own, and i really think that this is useless because the whole idea of using crypto is to stay away from the control from the banks and governments and using these or accepting them is against that idea.

Crypto currency could either be Centralized or decentralized depending on the creators motive my own problem with the CBN is that the placed a ban on Bitcoin just has china did but launching their e-naira with economic crisis surrounding the nations economy is a very wrong timing. First they should establish some level of economic stability then go ahead with their launching if not in not too long the system would crash

[Silberman]

Well I had a feeling this wouldn't launch successfully tomorrow been the 1st of October which is also the day Nigeria got her independence. The whole concept of eNaira just came from nowhere without the government actually planning properly. Nigeria isn't ready for a government controlled digital fiat currency, we're yet have a perfect banking system and this banks are operated individual by business men/women yet we want something that'll be controlled by the government which looking at other government initiatives aren't been going great.

Well it just got postponed and no date was given meaning this could be another abandoned project and we're not new to seeing things like this in the country; CBN defers eNaira October 1 launch, gives reason

The Central bank of Nigeria (CBN) has deferred the official launch of its Digital Currency, the eNaira.

The spokesman of the bank, Mr Osita Nwanisobi, said that the planned unveiling slated for today has now been deferred due to other key activities lined up to commemorate the country’s 61st Independence Anniversary.

No new date has been announced for the launch yet.

The best thing that could happen to the government of Nigeria is to abandon their project now and not suffer the indignity of no one using their coin for anything, even if the adoption of cryptocurrencies has grown all over the world, the majority of the ones using it are still doing so as a reaction to what is happening with the economy, they are using it specifically to avoid using the currencies the government create and issuing yet another centralized currency is not going to make people to flock to it and use it.

[BIT-BENDER]

The best thing that could happen to the government of Nigeria is to abandon their project now and not suffer the indignity of no one using their coin for anything, even if the adoption of cryptocurrencies has grown all over the world, the majority of the ones using it are still doing so as a reaction to what is happening with the economy, they are using it specifically to avoid using the currencies the government create and issuing yet another centralized currency is not going to make people to flock to it and use it.

The only way the E-naira can get adoption massively is if the nigerian government force an adoption plan on the citizens of Nigeria, If not I don't think it will be adopted, nigerian aren't fools we know how bad the leadership is, at least to the level of not trusting the potential of the E-naira for now, but an excited for one thing the government noticing nigerians are crypto-enthusiast and even after a ban we didn't become any less than we were, so I think the E-naira is the government failed attempt on controlling our enthusiasm in crypto-currency.

[Sithara007]

The only way the E-naira can get adoption massively is if the nigerian government force an adoption plan on the citizens of Nigeria, If not I don't think it will be adopted, nigerian aren't fools we know how bad the leadership is, at least to the level of not trusting the potential of the E-naira for now, but an excited for one thing the government noticing nigerians are crypto-enthusiast and even after a ban we didn't become any less than we were, so I think the E-naira is the government failed attempt on controlling our enthusiasm in crypto-currency.

The most important thing to remember here is that the e-NGN is not supposed to replace NGN. On the other hand, the Nigerian government is hoping that it will replace Bitcoin and other cryptocurrencies. The government is definitely going to force it's imposition upon the users (if not today, then it is definitely going to happen at some time later). The governments in third world and authoritarian nations have this false thinking that if they force someone to use a particular asset, then they would do that. But what they are forgetting is that times have changed and people are not ready to accept such directives from the government.

[Silberman]

The only way the E-naira can get adoption massively is if the nigerian government force an adoption plan on the citizens of Nigeria, If not I don't think it will be adopted, nigerian aren't fools we know how bad the leadership is, at least to the level of not trusting the potential of the E-naira for now, but an excited for one thing the government noticing nigerians are crypto-enthusiast and even after a ban we didn't become any less than we were, so I think the E-naira is the government failed attempt on controlling our enthusiasm in crypto-currency.

The most important thing to remember here is that the e-NGN is not supposed to replace NGN. On the other hand, the Nigerian government is hoping that it will replace Bitcoin and other cryptocurrencies. The government is definitely going to force it's imposition upon the users (if not today, then it is definitely going to happen at some time later). The governments in third world and authoritarian nations have this false thinking that if they force someone to use a particular asset, then they would do that. But what they are forgetting is that times have changed and people are not ready to accept such directives from the government.

This comes from a complete lack of historical understanding of how currency gets adopted, gold and silver became the mains forms of money for thousands of years not because someone imposed them to the population, they did do because the population realized they were the best forms of money they had available, however the government then monopolized the minting process and then scammed people with fiat currencies, however we are once again seeing the same process taking place now, and people will choose what benefits them and not the government and they will keep using bitcoin even if they ban it if they obtain benefits out of it.

[Oilacris]

But the central bank is still against crypto right? So I don't see how they're going to be beneficial and popular to the crypto community there, if they're trying to make things right for E-Naira, they need to lift their restrictions or do what China did.

Nigeria CBN is doing just as China, to paint decentralized currencies like bitcoin bad while piloting for centralized currencies which is the same as in value as the fiat spent in the country.

I do not see anything special about it too, eNaira is centralized and it is pegged 1-to-1 with naira which is depreciative.

I dont really see these digital currencies made out by Countries which is just basically the same with fiat in terms of functionality and a overall characteristics and thats why im aint surprised that countries would really make out  such decisions on making one.

Sooner or later then we would really see these digital currencies on every country in next years to come.Some might support decentralized one but most of them will surely
keep an eye to centralization.

Nothing surprising really!

[CryptopreneurBrainboss]

Sooner or later then we would really see these digital currencies on every country in next years to come.Some might support decentralized one but most of them will surely keep an eye to centralization.
Nothing surprising really!

I doubt if any country will be launching a decentralized currency, all will be centralized so they can still have control over the finance of their citizens as that's the only way they can control them. Money rules the world, therefore if you can control people money, you control them. The government knows this which is why they're against Bitcoin in the first place.

Even the government accepting bitcoin as a legal tender are doing so in the most centralized way possible which is why they're recommending their wallet be used and even if Nigeria was to accept a decentralized project as Bitcoin, thet would be done too in the most centralized ways as possible.

[Sithara007]

This comes from a complete lack of historical understanding of how currency gets adopted, gold and silver became the mains forms of money for thousands of years not because someone imposed them to the population, they did do because the population realized they were the best forms of money they had available, however the government then monopolized the minting process and then scammed people wit fiat currencies, however we are once again seeing the same process taking place now, and people will choose what benefits them and not the government and they will keep using bitcoin even if they ban it if they obtain benefits out of it.

Until the early 20th century, we actually had the gold standard (silver standard in some of the smaller countries). So the usage of gold/silver continued all the way up to that. This was removed in mid-20th century, as the governments started complaining about deflation. But what actually happened is that it enabled the governments to print unlimited amount of money, without any control and this resulted in massive inflation. And with every passing year, this issue seems to be getting worse.

[Victorycoin]

While the world's central bank is exploring the possibility of a digital currency issue nigeria cannot lag behind. The system will expand digital inclusion make it easier to send remittances from expatriates and smooth the way for Nigerians to shop internationally. For Nigerian traders who want to speed up the process of receiving money from customers abroad through the introduction of digital currency. The platform is also being used to facilitate secure and secure peer-to-peer transactions. An international P2P digital currency marketplace that facilitates quick and easy money transactions.

[bryant.coleman]

While the world's central bank is exploring the possibility of a digital currency issue nigeria cannot lag behind. The system will expand digital inclusion make it easier to send remittances from expatriates and smooth the way for Nigerians to shop internationally. For Nigerian traders who want to speed up the process of receiving money from customers abroad through the introduction of digital currency. The platform is also being used to facilitate secure and secure peer-to-peer transactions. An international P2P digital currency marketplace that facilitates quick and easy money transactions.

If the Nigerian government is thinking that expats would use e-NGN fo remittance payments, then I have to say that it is not going to be as easy as they think. Take the example of someone sending remittance payment from the United Kingdom to Nigeria. This individual can use Bitcoin, because there is a well established market for Bitcoin in the United Kingdom, as well as in Nigeria. So he can just convert his GBP to BTC, and then convert back to NGN from BTC once the payment reaches Nigeria. The case is not the same with e-NGN. It will not be easy to convert GBP to e-NGN in the United Kingdom, because forex transactions attract additional charges and formalities.

[Silberman]

This comes from a complete lack of historical understanding of how currency gets adopted, gold and silver became the mains forms of money for thousands of years not because someone imposed them to the population, they did do because the population realized they were the best forms of money they had available, however the government then monopolized the minting process and then scammed people wit fiat currencies, however we are once again seeing the same process taking place now, and people will choose what benefits them and not the government and they will keep using bitcoin even if they ban it if they obtain benefits out of it.

Until the early 20th century, we actually had the gold standard (silver standard in some of the smaller countries). So the usage of gold/silver continued all the way up to that. This was removed in mid-20th century, as the governments started complaining about deflation. But what actually happened is that it enabled the governments to print unlimited amount of money, without any control and this resulted in massive inflation. And with every passing year, this issue seems to be getting worse.

Correct, however even before that private companies had the right to mint their own coins as long as they were made of gold or silver and anyone could use them to buy whatever they wanted, however with the excuse that some of those businesses were scamming their customers by minting coins with less gold and silver content the governments took control of the minting process, which eventually lead to us to fiat currencies.

[Sithara007]

Correct, however even before that private companies had the right to mint their own coins as long as they were made of gold or silver and anyone could use them to buy whatever they wanted, however with the excuse that some of those businesses were scamming their customers by minting coins with less gold and silver content the governments took control of the minting process, which eventually lead to us to fiat currencies.

Well.. this is strange. As far as I know, only the government had the right to mint coins (even if it was made of gold and silver). Private entities could create gold or silver coins/bars, but they were never used as legal tender. An exception would be the case of colonial trading companies like the East India Company, Danish East India Company and the Companhia do Commércio da Índia (Portuguese East India Company), which were allowed to mint currency in the areas where they were trading. But these coins were never used ether in Britain or Portugal.

[tygeade]

Adopting this central bank distributed currency is not going to be making any sense at all. Digital currencies that are issued by central banks are going to be paired to the Fiat currency. So that means you are basically still buying the same Fiat that you have been running from. And another thing is that since they are going to be distributed by the central bank, then it’s going to be centralized and the central bank will have control over it.

Just like banks are doing these days they can decide to close your wallets and restrict you from having access to it for as long as they want, so all these central bank digital currencies are not worth making use of. It is better to just continue making use of the normal Fiat, because it’s still the same thing. But, cryptocurrency gives you complete freedom to be in control of your wealth.

[perryxi2]

You know that the Nigerian government does not believe in democracy or the rule of law; The cryptocurrency trading ban and the use of Twitter are an example of this. The Nigerian system is part of those systems that are not yet ripe for crypto. This is not the government's priority at this point but to try and fix the economy. And Nigeria will remain selfish with its policies. I see day by day how Nigeria is moving further and further away from its dealings. electronic currency translation. They don't want themselves or their people to get too involved in crypto activity.

[Silberman]

You know that the Nigerian government does not believe in democracy or the rule of law; The cryptocurrency trading ban and the use of Twitter are an example of this. The Nigerian system is part of those systems that are not yet ripe for crypto. This is not the government's priority at this point but to try and fix the economy. And Nigeria will remain selfish with its policies. I see day by day how Nigeria is moving further and further away from its dealings. electronic currency translation. They don't want themselves or their people to get too involved in crypto activity.

The government may not be ready but their population seems to be as we have seen a very sharp increase in the activity related to cryptocurrencies coming from that country, now some people get scared when they hear the government not approving bitcoin but bitcoin was created with this in mind, we do not really need the approval of the government, what we need is the support coming from the population, and once we have it then getting approval coming from the government just becomes a matter of time.

[ene1980]

~
Nigeria CBN is doing just as China, to paint decentralized currencies like bitcoin bad while piloting for centralized currencies which is the same as in value as the fiat spent in the country.

I do not see anything special about it too, eNaira is centralized and it is pegged 1-to-1 with naira which is depreciative.

What i would like know is whether you can easily purchase other cryptocurrency with the so called eNaira, if there is any local exchanges accepting them so that you could fund the account with eNaira and purchase the coin even if it is centralized. If that is possible then it is not that bad but if you are not having the freedom to purchase them then there is no point in using them.

[Charles-Tim]

---snipped---

What known yet is how eNaira can be converted to naira which means someone that has eNaira can send it to his bank account and vice versa.

Later it will be possible for exchanges to support it as they support naira too, but Nigerian CBN banned decentralized currencies which makes naira not to be transferrable to bank directly, if the ban is not lifted, exchanges may not support eNaira transactions. But if the ban is lifted off, I would not see it surprising Binance and some other exchanges will support it.

About decentralized exchanges, anything agreeable between buyer and seller is supported, if eNaira can be transferred from one person to another through the eNaira wallet, then it would be a good means of exchanging eNaira for bitcoin and vice versa, this will depend on the buyers and sellers agreement.