*President Muhammadu Buhari states with the growing popularity and acceptance of similar digital currencies, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments in their economies

*Says the Central Bank of Nigeria 鈥榟as been a leading innovator鈥� in the form of money the Bankers鈥� Bank produces, and in the payment services it deploys for efficient transactions in the economy

*33 banks are fully integrated and live on the e-Naira platform, with 500 million successfully minted e-Naira platform, says CBN Governor

Isola Moses | 绿帽献妻

Nigerian President Muhammadu Buhari has disclosed the rationale behind his approval of the design and eventual unveiling of the country鈥檚 e-颅Naira digital currency for the use of consumers of financial products and services in the country.

绿帽献妻 reports the President said in his address on the occasion of the launch of the country鈥檚 Central Bank Digital Currency (CBDC) Monday, October 25, 2021, at the State House, Abuja, FCT, that the Central Bank of Nigeria鈥檚 (CBN) diligence, careful consideration of the entire payments, financial architecture of the country, and designing of the e-Naira to complement and strengthen these ecosystems have actually 鈥渋mplemented secure safeguards and policies to maintain the integrity of the financial system鈥� in the country.

The e-Naira was developed by FinTech company Bitt, which is also behind the creation of CBDC in some East Caribbean countries.

Buhari said: 鈥溾�滻n recent times, the use of physical cash in conducting business and making payments has been on the decline.

RELATED: Buhari Activates e-Naira, Says Africa鈥檚 First Digital Currency Will Boost Nigeria鈥檚 GDP By $29bn

鈥淭his trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new Digital Economy.

鈥滱longside these developments, businesses, households, and other economic agents have sought for new means of making payments in the new circumstances.

鈥淭he absence of a swift and effective solution to these requirements, as well as fears that Central Banks鈥� actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of 鈥榩rivate currencies鈥� that seemed to have gained popularity and acceptance across the world, including here in Nigeria.鈥�

According to the Nigerian President, 鈥渋n response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.

鈥淎 handful of countries including China, Bahamas, and Cambodia have already issued their own CBDCs.

鈥淎 2021 survey of Central Banks around the world by the Bank for International Settlements (BIS) found that almost 90 percent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 percent were deploying pilot projects.鈥�

He further stated: 鈥淣eedless to add, close monitoring and close supervision will be necessary in the early stages of implementation to study the effect of e-Naira on the economy as a whole.

鈥淚t is on the basis of this that the Central Bank of Nigeria (CBN) sought and received my approval to explore issuing Nigeria鈥檚 own Central Bank Digital Currency, named the e-Naira.鈥�

Buhari also noted that his ultimate approval was as well underscored by the fact that the CBN has been a leading innovator 鈥樷�榠n the form of money they produce, and in the payment services they deploy for efficient transactions.鈥欌��

Nigeria鈥檚 apex bank has invested heavily in creating a payments system that is ranked in the top 10 in the world and certainly the best in Africa, said Mr. President.

RELATED E-Naira Launch: CBN Assures Of Inclusive Growth, Sustainable Economic Development

Buhari also explained: 鈥淭his payments system now provides high鈥恦alue and time鈥恈ritical payment services to financial institutions, and ultimately, serves as the backbone for every electronic payment in Nigeria.

鈥淭hey have also supported several private鈥恠ector initiatives to improve the existing payments landscape, and in turn, have created some of the world鈥檚 leading payment service providers today.鈥�

e-Naira platform is live with encouraging response from Nigerians, others: CBN Governor

In his remarks at the event, Mr. Godwin Emefiele, Governor of CBN,聽 also restated that e-Naira is Nigeria鈥檚 CBDC, and it is the digital equivalent of the physical Naira.

Mr. Godwin Emefiele, Governor of CBN

Emefiele stated: 鈥淎s the tagline simply encapsulates, the e-Naira is the same Naira with far more possibilities.

鈥淭he e-Naira 鈥� like the physical Naira 鈥� is a legal tender in Nigeria and a liability of the CBN.

RELATED: CBN Outlines Benefits Of e-Naira Digital Currency In Economy

鈥淭he e-Naira and Naira will have the same value and will always be exchanged at 1 Naira to 1 e-Naira.鈥�

He explained that the CBN has given careful consideration to the entire payments and financial architecture, and has designed the e-Naira to complement and strengthen these ecosystems, and has implemented secure safeguards and policies to maintain the integrity of the financial system in Nigeria.

There would be strict adherence to the anti-money laundering and combating the financing of terrorism (AML/CFT) standards in order to preserve the integrity and stability of Nigeria鈥檚 payment system, he said.

Since the e-Naira platform went live on Monday, October 25, there have been overwhelming interest and encouraging response from Nigerians and other parties across the world with over 2.5 million daily visits to the Web site, he noted.

Nigeria CBDC goes live with 500m e-Naira ($1.21 million) already minted, says Emefiele

Meanwhile, the Nigeria鈥檚 Central Bank Digital Currency (CBDC), the shortly after an official launching by President Buhari on Monday.

Mr. Emefiele listed the following milestones of the payment initiative: 鈥�33 banks are fully integrated and live on the platform, 500 million has been successfully minted by the Bank, N200 million has been issued to financial institutions, over 2,000 customers have been onboarded and over 120 merchants have successfully registered on the 鈥�.

Mr. Emefiele disclosed on the occasion that 500 million eNaira ($1.21 million) has already been minted.

绿帽献妻 reports the country鈥檚 CBDC鈥檚 digital currency app and its merchant wallet are now live and available for download.

The two apps, e-Naira speed wallet and e-Naira merchant wallet, are now available on Google Playstore and Apple Store.

A notice on the e-Naira Web site gives details into how the currency and the wallet will work.

鈥淕et Ready With Your Accurate BVN Data For Your Hitch-Free Enrolment,鈥� says notice on Web site.

鈥淭o sign-up on the e-Naira speed wallet, you would be required to input the following details exactly as captured during your BVN enrollment.

鈥淔irst Name, Last Name, Date of Birth, State of Origin, and E-mail.

鈥淵our Banks are waiting to assist you in validating and updating your BVN details to ensure seamless enrolment to the e-Naira Platform,鈥� it says.

The central bank has also published the regulatory guidelines of the currency on its .

鈥淭he guideline seeks to provide simplicity in the operation of eNaira, encourage general acceptability and use, promote low cost of transactions, drive financial inclusion while minimising inherent risks of disintermediation of any negative impact on the financial system,鈥� noted the site.

CBN applauds President Buhari for groundbreaking reforms in banking and financial industry

He as well used the occasion to commend President Buhari for making history, yet again, with the launch of the e-Naira 鈥� the first in Africa and one of the earliest around the world.

The CBN Governor further said: 鈥淢r. President, as you make groundbreaking reforms, there has been a continuing debate on the true value of the Naira.

鈥淩ather than worry today on the direction of the exchange rate, let us take a step back and analyse how we got here in the first place.

鈥淧lease recall that since the advent of the International Monetary Fund (IMF) led Structural Adjustment Programme (SAP) in 1986, and the introduction of the Second Tier Foreign Exchange (SFEM) market, the Naira has been on a one-way free fall from parity to the US Dollar in 1984 to over N410/USD today.

鈥淪ome 35 years later, we have not been able to achieve the many promises and objectives of that programme.

鈥淚nstead, what we have seen is widespread import dependency, which has wiped out most of our production and manufacturing bases and exported all our jobs in the process.

鈥淯nder your leadership, Mr. President, we must stop this decline for good! We must return to massive homemade production; we must get our people working again.

鈥淲e must create the economic environment for massive domestic production and significant non-oil exports.鈥�

He said: 鈥淎s custodians of your national reserves, let me first assure you that there is no cause for alarm.

鈥淥ur FX reserves are strong and indeed getting stronger by the day, crossing the 40 billion USD mark, and is one of the highest in Africa 鈥� and growing.

鈥滲ut we cannot fritter our reserves away on cheap imports and currency speculators. We must return to an employment-led growth anchored on productivity and rewarding producers of local goods, services, innovation and new technologies.

鈥淚f you consume cheap imports and export our jobs, we will make you pay dearly; but if you produce locally 鈥� with little or no foreign inputs beyond machinery, we will support you, and the markets will reward you abundantly.鈥�

Besides all policies and actions of the CBN to support the economy especially through the trying times of COVID-19, Emefiele announced a new financial instrument titled, 鈥淭he 100 for 100 PPP 鈥� Policy on Production and Productivity鈥�, which will be anchored in the Development Finance Department under his direct supervision.

He also explained that under this policy, the CBN would advertise, screen, scrutinise and financially support 100 targeted private sector companies in 100 days, beginning from 01 November 2021, and rolling over every 100 days with new set of 100 companies, whose names will be published in National Dailies for Nigerians to verify and confirm.

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