The Central Bank of Nigeria (CBN) announced that the eNaira platform processed 700,000 transactions worth a total of N8 billion in its first year. The information was disclosed during the celebration of the digital currency’s first anniversary.
The eNaira is a central bank digital currency (CBDC) that will be issued as legal tender by the Central Bank of Nigeria. The currency will be introduced in October 2021. It is the electronic representation of the Naira and functions in the same way as currency.
In his keynote address, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said, “I am delighted to be here today to celebrate yet another milestone in our journey towards transforming Nigeria to a digital economy, and most importantly building the future monetary system of our country in response to the emerging trends and developments in the global digital space.” “I am delighted to be here today to celebrate yet another milestone in our journey toward transforming Nigeria to a digital economy,” Emefiele said.
“Since its inception, the eNaira has offered Nigerians unlimited possibilities in terms of accessing financial services. In doing so, it has lived up to the selected tagline, “Same Naira, More Possibilities,” in addition to achieving some of the goals that were originally established.”
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CBN and eNaira
It is anticipated that the introduction of the eNaira will “enhance financial inclusion,” “support poverty reduction,” “enable direct welfare disbursement to citizens,” “support a resilient payments ecosystem,” “improve availability and usability of central bank money,” “facilitate diaspora remittances,” “reduce the cost of processing cash,” and “reduce the cost of and improve the efficiency of cross-border payment,” amongst other benefits.
“More specifically, there has been an immense interest and supportive response from parties across the world, including Nigerians, as shown by the following milestones:
“33 financial institutions are now completely integrated and operational on the platform. The bank has successfully produced N3.00 billion worth of new currency. It has been distributed in the amount of N2.10 billion to various financial institutions. Onboarding has been completed for about one million (919,000) users. Over 3,305 retailers from all over the country have been able to successfully register their businesses on the eNaira platform. Some of these retailers include Shoprite, Sahad Stores, A.A. Rano fuelling stations, Fraser Suites, and November Cubes.”
On the site, over 700,000 transactions having a total value of around N8.00 billion have been logged. Over 2.5 million people visit the eNaira website each and every day.
The Governor of the Central Bank of Nigeria (CBN) claimed that the eNaira would utilize the enormous mobile telecom membership base, which stood at 150 million in June to bring more Nigerians into the financial sphere.
Emefiele stated that in the future, the eNaira will collaborate with the Ministry of Humanitarian Affairs through the creation of sector-specific tokens to support the Federal Government’s social programs and distribution of targeted welfare schemes in an effort to lift millions of people out of poverty by the year 2025.
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More about eNaira
eNaira is a digital currency issued as legal tender by the Central Bank of Nigeria. It is a central bank digital currency (CBDC), which means it is backed by law and the full sovereignty of Nigeria. It is the electronic representation of the Naira and can be utilized in the same manner as currency. eNaira can be stored in a digital wallet, which is referred to as an eNaira wallet.
Compared to cash payments, the eNaira has the advantage of serving as both a medium of exchange and a store of value. This makes it a more desirable option for use in retail transactions. eNaira is distinguished from other types of central bank money by its extraordinary and unique operational framework, which sets it apart from other forms of money.
The blockchain technology that underpins the eNaira is identical to that which underpins Bitcoin and Ethereum. Like those cryptocurrencies, the eNaira is kept in digital wallets and can be used to conduct financial transactions. Additionally, the eNaira can be transferred digitally to virtually anyone in the world who possesses an eNaira wallet at almost no cost.
