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e-Naira: CBN issues guideline, dynamics to Nigerian banks on the onboarding process

e-Naira – Following the Central Bank’s preparedness and commitment to fulfil its promise on creating/designing a home grown digital currency the apex bank has sent guideline and expected transaction dynamics to Nigerian participating banks in view of the kick off date.

Recall, the apex bank had earlier scheduled October 1 as the flag off of the indigenous digital currency.

In February 5, 2021 the Central Bank sent out a circular to all DMBs issuing immediate order to stop facilitating Bitcoin and other crypto related transactions.

Following its ban on Bitcoin/cryptocurrency in Nigeria, the Central Bank came under heavy criticism by Nigerians across all fronts.

Sequel to this, in a bid to right things the apex bank ventured into creation of home grown indigenous digital currency it now termed the e-Naira.

In the Apex bank’s latest guideline to the banks, it was clear that e-Naira is a legal tender meant to serve the country, a non-interest bearing CBDC, a value based transaction , transaction limit tender.

Transactions under the e-Naira in a latest program were categorized into:

Monetary authority

This phase will be taken care of by the CBN itself which has to do with issues, distribute, redeem and destroy the currency transaction

The financial institution Suite

This involved licensed financial institutions asking for currency or issue stablecoins, manage digital currency across network of branches with recourse to security and safety standards which has to do with Know Your Customer (KYC), Anti Money Laundering (AML) compliance capacity.

eGovernment suite

In this standard, the government will have the capacity to process and consummate digital payment sent or received by Nigerian active end users and other businesses alike.

The Merchants

The Merchants will be made to make available a low cost payment and management software, POS, online functionality, remote and online payments, analysis and reconciliation of transactions carried out.

The Retail consumer suite

This will make for a user prolific and seamless experience, which will enable invitation and house advanced privacy and security protocol.

Transaction cost for the e-Naira wallet

In the protocol, there will not be a charge for user-to-merchant transactions and peer-to-peer wallet transactions.

The banks are saddled with the responsibility to market and promote the issued digital currency as a major cash alternative to all customers in support of the CBN’s financial inclusion.

These banks are expected to provide a seamless customer experience during the onboarding process.

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