a regulatory framework in order to prevent disruptive competition for the e-Naira, and to ensure protection from operational and cyber-security risks against the digital currency, which will be co-existent with traditional payment systems.
The central bank also pointed out that the e-Naira would reduce the cost of operations and cash management, while assisting financial institutions in maintaining records of transactions. Moreover, the proposed digital currency is expected to generate attractive opportunities for Nigeria’s financial system through emerging business models and modern financial products and services.
Under the e-Naira regime, individuals and business will be able to transfer funds to other persons and businesses in real time, either through future payments channels or even while they are offline. According to CBN Governor Godwin Emefiele, a customer could also convert only part of the funds they have in their account into a digital wallet by way of a digital currency.
“If, for instance, you have N10 million in your account. Of course, when this starts, the CBN will move some of the balances of banks with CBN to those banks in digital currency. So, you go to your bank, you have N10 million and you say you want to convert N2 million out of your N10 million into a digital currency. They will debit your account and move it to your wallet of N2 million digital currency, which you can spend across countries,” he explained during the recent Monetary Policy Committee (MPC) meeting in Abuja.
The central bank Governor further noted that the apex bank is working tirelessly to launch the e-Naira in a couple of months. “[…] many other central banks are at advanced stages of revealing their own digital currencies. And our own digital currency, which is tagged e-Naira, will certainly come into operation, by the special grace of God, by October and we are working very hard for this,” he said.
