CBN Releases Guidelines To Nigerian Banks To Govern The eNaira Project
Aug. 30, 2021, 1:22 p.m.
The Central Bank of Nigeria has released a report and guideline to govern the launch of its eNaira project. According to the apex bank, the guidelines describe how the new currency would be designed and operated.
The report also states that the eNaira is a legal tender for the entire country which will have non-interest-bearing CBDC status, a transaction limit for customers, and a value-based transaction limit.
As cited by Nairametrics, the eNaira project is in five stages;
- Monetary Authority Suite; The Central Bank will be handing the first product component that includes issue, distribute, redeem and destroy the currency. Store data on a cloud server, monitor and analyze currency transactions.
- Financial Institution Suite; licensed financial institution will be able to request currency or issue stablecoins, manage digital currency across branches, KYC, identify and AML compliance capability.
- eGovernment Suite; the government will b able to efficiently process digital payments sent to and received from citizens and businesses.
- Merchants will provide low-cost payment and business management software, POS, remote payment solutions, online capabilities, transaction analysis, and reconciliation.
- Retail Consumer Suite; features user-centered designs for a great user experience. The architecture will be expandable to enable innovation; features advanced privacy and security.
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The digital currency infrastructure does not charge for user-to-merchant transactions and P2P wallet transactions.
It shall be the responsibility of Nigerian banks to promote and market the centrally issued digital currency as a cash alternative to existing and potential customers in support of the Nigerian apex bank’s goal for financial inclusion.
The CBN told the banks and other licensed operators they may provide their own wallets since it does not intend to compete against them.
Since the eNaira is a national critical Infrastructure, its system will be subjected to comprehensive security checks, and all data and personally identifiable information will be kept off the ledger and not be stored on the ledger.
tag: Nigeria, digital Currencies, Fintech,
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Verny loves to write poetry, fiction and quotes. Her love for writing landed her in journalism. She loves gadgets and travelling to explore new places.