The main webpage for Nigeria’s central bank digital currency (CBDC) has gone live earlier than next month’s planned rollout date for the digital naira.
- According to the site, the eNaira is a “unique form of money” denominated in the national currency serving as both a medium of exchange and store of value.
- The Central Bank of Nigeria’s (CBN) information technology director, Rakiya Mohammed, had announced the bank’s intention to roll out the country’s CBDC by Oct. 1.
- Nigeria’s digital currency will be issued and regulated by the CBN.
- Financial officials in Nigeria have been struggling with crypto’s rise in the African nation. Nigeria banned crypto transactions within the banking sector in February. CBDCs are seen as an effective means of combating crypto’s increasing popularity in a digital age.
- A CBDC touts better payment prospects than traditional rails or physical currency, especially when it comes to retail transactions, though it is not with its downsides.
- Some argue its benefits of financial inclusion, while others still are concerned it would provide central banks with greater control over citizens’ financial rights through disintermediation with commercial banks.
- Still, the website claims the eNaira will cultivate economic growth, provide cheaper remittances, limit fraudulent behavior, and is secure, among other benefits for its use.
- The eNaira will be accompanied by a wallet sanctioned by the CBN that a user can either link to their bank account or pay as they go with a prepay option, according to the webpage.