e-Naira: All the moneys in Nigerian banks are in electronic form and these can be linked and access with various payment channels in the ecosystem. CBN creating digital wallet to access same money in electronic form offers nothing new, laymen say, indication the need for a strong awareness campaign
IT News Nigeria:
All the moneys in Nigerian banks are in electronic form and these can be linked and access with various payment channels in the ecosystem and CBN creating a wallet to access same money in electronic form offers nothing new, laymen claim. This however is a strong indication of much needed awareness campaign on on the project if it will succeed in the country.
According to the Central Bank of Nigeria (CBN), it is a central bank digital currency (CBDC) legal tender. It is the digital form of the Naira and will be used just like cash.
What experts say on e-Naira?
An expert, Ugochukwu Obi – Chukwu said in 20 minutes video the recently launched digital currency: e-Naira basically stands for Electronic Naira. It’s basically a digital form of naira. So, naira you know like most currencies today that is issued by any central bank. It’s called a fiat currency, right? fiat currency because it’s a currency that is backed by you know, by the government. So the digital Naira, which is also called cbdc, central bank digital currency. For that’s what most banks call it. It’s the digital form of the fiat currency.
So same thing as a physical Naira just that it is in digital form, right. So the difference between the Naira and the cbdc is that it is a digital representation of the naira. So it’s not the same thing as you know,
So instead of the CBN, printing, physical money, they will mint e-naira. So that’s a different it is not a physical Naira, just digital representation of the naira. So, the same way CBN print Naira they can mint digital currency, but only in digital form.
e-Naira does not exist and will not transform to physical cash
It doesn’t exist in physical form. So the CBDCs or the e-Naira will not exist in physical form. So if there is 1 billion e-naira means that you’re not going to see that 1 billion in physical cash. The money we transfer from our ATMs and accounts exist in a vault somewhere.
That cash that we transfer to each other is represented by physical crash in some vault somewhere held by bank.
You can only transfer a digital currency; you can’t basically withdraw it as cash. So, it’s basically the same money that exist within that particular currency space. You can transfer from wallet to wallets. So it works a bit like l online money, but the difference is that your online money is backed by some physical cash somewhere, but your digital currency is not backed by that