FEATURED: Things You Should Know About The eNaira

The website of Nigeria’s digital currency, eNaira, went live on Monday, shortly after been launched by President Muhammad Buhari.

This comes days to its official launch on October 1st as earlier disclosed by the Central Bank of Nigeria governor, Godwin Emefiele.

The site, on its welcome note, said the eNaira is a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira. It reads:

“eNaira is a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira.

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. 

eNaira has an exclusive operational structure that is both remarkable and nothing like other forms of central bank money.”

Below are some things you should know:

¶ It is a digital storage that holds the eNaira. 

¶ It is held and managed on a distributed ledger.

¶ It can be used for remittance which includes cheaper diaspora remittance option.

¶ It is traceable, hence, fraudulent activities can be traced.

¶ It can be used for both international and local trade.

¶It has a unique identity and security structure.

¶ It is exchanged peer to peer.

¶ It is universal – anybody can hold it.

¶ It does not yield any interest.

¶ Payments can be made by scanning QR codes.

¶ You can monitor your e-wallet activities.

9japarrot earlier reported that;

To create an e-wallet account, for smartphone users, download the eNaira Speed Wallet from either the Google Play Store or Apple Store and complete the registration process. For feature phone users, utilize USSD codes and follow the registration prompts.

Some questions and answers about eNaira

✓ Why was the eNaira launched?

With the rise in popularity of cryptocurrencies like Bitcoin, The Federal Government of Nigeria, just like other Governments around the world consider producing their own digital currencies. Hence, the launching of the digital currency for Nigeria ( eNaira).

✓ What is eNaira?

eNaira is the name given to the CBN’s first proposed digital currency.

The new currency will not replace the physical Naira but will act as a digital representation of it.

✓When did the CBN launched the eNaira?

The CBN announced a pilot scheme of the eNaira starting on October 1st, 2021.

✓ How will the eNaira work?

The eNaira will work as a digital version of the physical Naira.

Financial institutions licensed by the CBN will be responsible for ID verification, eNaira payment processing, and creating wallets for customers to hold their eNaira.

The eNaira wallet is similar to a bank account and is created in the same way; however, it will be a separate account that is not connected to an already existing bank account.

Transactions will be possible between two parties that both have an eNaira wallet, which allows you to store, send, and receive eNaira.

✓ Is eNaira the same thing as Bitcoin?

No. Unlike Bitcoin which is a cryptocurrency, the eNaira is a digital currency issued by the government.

This difference has a big impact on the stability of the currency.

For example, the eNaira will maintain the same value as the Naira.

 Therefore, its value will not rise and fall the way Bitcoin does, also meaning it is not something to invest in to grow your fortunes.

The eNaira simply makes it easier to facilitate transactions digitally without needing to be backed by cash.

✓ How will the eNaira affect the economy?

It is still unclear what impact eNaira will have on the Nigerian economy, if any at all.

However, the CBN believes the eNaira will greatly improve financial inclusion, payment processing, and tax collection, among other things.

The eNaira is also expected to increase cross-border trade, which could have a positive impact on the Nigerian economy. 

✓ How will eNaira affect money transfers to Nigeria?

It is still unclear how cross-border transactions will work with eNaira.

However, one thing is certain.

The eNaira will not replace physical Naira. Therefore, it is still possible to send money to Nigeria as usual from overseas. 

Similarly; 

To resolve failed transactions, Reach out to the customer support of the bank you selected when registering for eNaira through their available channels which include: phone, email, whatsapp, etc. If issues are not resolved within 48 hours, send an email to CBN’s eNaira Customer Support via helpdesk@enaira.com