Quite an interactive session we had with the Giant project ( eNaira ) team of the Central Bank of Nigeria. We were invited to a stakeholder meeting with the CBN yesterday, July 22nd, 2021. Attendees were given a walk through stages of the project from ground-up… Started with the introduction of eNaira CBDC, there’ll be two types of the eNaira RETAIL eNaira and WHOLESALE eNaira.
The retail is used in the same manner as bank notes to make retail payments: P2P, D2B While wholesale CBDC is uesd to enable transaction between financial institutions, central banks and entities holding accounts with Central banks.
The Bank had been conducting research in regards to central bank digital currencies since 2017 and may conduct a proof of concept before the end of this year.
Benefits to the economy, government and other stakeholders:
Include the potential to reduce cash handling costs by 5-7%, Deepen financial inclusion, reliable mechanism to distribute fiscal stimulus to citizens , reduce tax leakages etc.
potential roles for other stakeholdres were identified ( the internected nature of the payment landscape
The CBN CBDC policy objectives for eNaira…
macroeconomic management and growth
cross border payment facilitation
monetary policy effectiveness
recenue and tax collection
The CBN expection of the eNaira include:
parity of value
The eNaira lifecycle and benefit for the fintech ecosystem…
We were made to understand that the eNaira will be public-private driven The Director of IT, at the apex bank who anchored the session revealed that the project will on an open source. The network is an open-source platform which means several developers can contribute to its code such that participating banks or organization will be allowed to run node on the network for transaction validation and participation is open to interested party that register and meet the requirements…
It is true, Nigeria is launching its own Digital currency ( eNaira ) come October 1st. Brace up, learn it and use it.