https://www.droidnine.com/2021/09/the-enaira-will-change-nigerian-economy.html

The Central Bank of Nigeria recently released some guidelines on the eNaira also known as Nigeria’s digital currency and in this article, that’s what we’ll be discussing. I’ll explore what the eNaira is, what you should know about it and what the effects might actually be for you or every single Nigerian both positive effects and negative effects.

So, What is eNaira?
In simple terms, it’s Naira but Digital or you could call it cashless Naira. It is not a cryptocurrency, but it uses technology for Digital Currencies from a company called Bitt Inc. It is also called a CBDC which means Central Bank Digital Currency and countries like China have one too.

eNaira serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments. It has an exclusive operational structure that is both remarkable and nothing like other forms of central bank money. The eNaira is set to launch on the 1st of October and as we all know, that day is also the day of Independence for Nigeria, so it just made sense that they would want to do it then.

Why did Central Bank Propose this?
In February of 2021, the CBN implemented a nationwide ban on cryptocurrency. According to CBN, they did not regard cryptocurrency as money and banks must not touch cryptocurrency or enable it in any way, shape or form.

Two months later, the Governor of the Central Bank of Nigeria announced that Nigeria will be considering its own digital currency. At the height of the “crypto ban”, Nigeria was the 2nd in the world with regards to the volume of cryptocurrencies being traded on Paxful’s platform, it showed that the parallel market was very strong and it was putting pressure on the value of the Naira currency.

Basically, one major way Nigeria earns foreign exchange apart Oil is remittances or people sending in Dollars, Pounds and such into Nigeria, with Bitcoin, you won’t be able to control who’s sending what in and out of the country and if it took over, it could render financial institutions somewhat less useful.

We are also facing a major dilemma on the exchange rate front, we have hit a 530 Naira to $1 all-time high. One of the reasons we couldn’t get a $1.5 Billion Dollar loan in Nigeria from the World Bank in June of 2021 was because of our exchange rate system. This brings us to today, in September, less than a month before the eNaira launch in October, and Nigeria has started to lay down some ground rules.

Now, what is the eNaira process like?
First things first, there will be different levels or tiers of wallets and there will be launch stages. Let’s talk about Stages.

https://www.droidnine.com/2021/09/the-enaira-will-change-nigerian-economy.html