All you need to know about eNaira and it’s impact on the physical Naira

With the increase in the popularity of cryptocurrencies like Bitcoin, governments around the world have begun to consider producing their own digital currencies, while other countries like the Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, etc have fully launched their digital currency.

Nigeria is preparing to join over 80 other countries that have finally launched their digital currency.

Recently, the Central Bank of Nigeria (CBN) announced plans to launch their own digital currency called the eNaira on the 1st of October, 2021, which is also the country’s independence day.

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. Meanining, 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.

However, the eNaira should not he mistaken for crypto currencies like Bitcoin, 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.

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

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