E-Naira Will Bring Stability To Banking Sector – CBN

  After the CBN announced the launch of its digital currency which is to take place in October, The importance of E-naira to the economy has been emphasized from the facilitation of trade to the effective payment to name a few have all been broached by the apex bank of nigeria as the benefits that will be derived from this project.

The deputy governor of the central bank of Nigeria Mr Shonubi said “The Central Bank in its implementation has ensured the e-Naira feeds our economy and provides greater value. The Central Bank Digital Currency (CBDC) will also make it easier for the banking system to comply with existing laws such as anti-money laundering, customer protection against fraud and ensuring the safety and stability of the payment system”

Mr Shonubi stated that “the e-naira would prove safer than “privately issued cryptocurrency”, he adds that the launch of digital currency would be to complement existing payment pathways, thereby ensuring a stable system. “For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic. I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them,” Mr Shonubi said. The CBN had earlier announced the launch of its digital currency (e-Naira) pilot program in October.

He also spoke on the importance of eNaira in Africa’s largest economy that included cross-border trade facilitation, financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social interventions. the apex bank had chosen Barbados-based financial tech company Bitt Inc. as the technical partner for the eNaira project. Nigeria’s adoption of digital currency and trade follows a trend of central banks worldwide deliberating on whether to adopt digital currencies in their countries.

The e-Naira project came months after the CBN banned the trade of digital assets in the country, instructing banks to shut down accounts of customers involved in cryptocurrency transactions. The action was widely criticized as throwing the country of about 200 million back to the dark ages, especially as Nigerians had already gained worldwide recognition as critical cryptocurrency traders.