More details emerge about how CBN’s e-Naira would affect Nigerians

The Central bank has taken actions against crypto transactions, but embraced the fourth industrial revolution as Nigerian Central Bank Digital Currencies (CBDC), “e-Naira”, is set to launch in October. In light of this, here is what you should know about Nigeria’s CBDC and how it affects you.

At the Monetary Policy Committee (MPC) meeting on Tuesday, July 27th, 2021, Nigeria’s central bank governor, Godwin Emefiele, confirmed the CBDC debut date for October 2021. Since 2017, the CBN has been researching CBDC alongside over 80% of Central Banks, with only the Bahamas, the Eastern Caribbean, and China having implemented it in practice.

Central Bank Digital Currencies is supported by law and is normally used as legal money, it is also considered the central bank’s direct liability. The CBDC would be divided into two categories: retail and wholesale. A ‘retail’ CBDC would be used as a digital extension of currency by all persons and businesses, whilst a ‘wholesale’ CBDC may only be utilized as a settlement asset in the interbank market by permitted institutions.

According to sources, the live implementation of the CBDC dubbed “e-Naira” will be the result of the research, “Project Giant.” Macroeconomic Management and Growth, Cross-Border Trade Facilitation, Financial Inclusion, Monetary Policy Effectiveness, Improved Payments Efficiency, Revenue and Tax Collection, Remittances Improvement, and Targeted Social Interventions are the main goals of the project.