ENAIRA EXPLAINED: EVERYTHING YOU SHOULD KNOW ABOUT THE NIGERIA eNaira. how does it work ?
WHAT IS eNaira?
eNaira is a Central Bank of Nigeria-issued digital currency that utilizes the block chain technology and provides a unique form of money denominated in Naira. eNaira serves as both a medium of exchange and a store of value, offering more flexible, Secure, Faster and better payment prospects in retail transactions when compared to cash payments.
NIGERIA LAUNCHES eNaira
Nigeria has launched her first digital currency, which was launched by the country’s President Muhammadu Buhari and also the Central Bank Governor Mr. Godwin Emeifiele. The eNaira currency was initially planned to be lunched on the 1st of October to commemorate the Nigeria’s independence was later put on hold. The official launch took place at the state house on Monday 25th of October in Abuja, with top government officials attending.
Nigeria, Africa’s largest is economy is the first country in the continent to adopt digital currency. The launch also ranks Nigeria among very few nations in the world to adopt the electronic money system. Nigerian president, Muhammadu Buhari unveiled the e-Naira and said it could potentially boost Nigeria’s Gross Domestic Product by up to $29 billion over the next decades.
WHY eNaira
The CBN stated earlier that the eNaira is meant to create a secure and cost-effective process for remittance inflow to the country, amongst other benefits.
When compared to FIAT, the eNaira has a lower cost. The account holder is not charged for daily transfers between accounts. The fact that traders will not be charged fees for withdrawals and deposits to and from their bank account is a huge incentive. Transaction fees are eliminated, lowering the cost of doing business while increasing security.
The apex bank also stated that eNaira’s usability would improve as Nigerians without internet-enabled phones would be able to transact without having to subscribe to data or having an internet-enabled phone.
The CBN has also said that the eNaira can serve as a medium for the government to send direct payments to citizens eligible for specific welfare programs.
Below are some things you should know:
- It is a digital storage that holds the eNaira. It is held and managed on a distributed ledger.
- It can be used for remittance which includes cheaper diaspora remittance option.
- It is traceable, hence, fraudulent activities can be traced.
- It can be used for both international and local trade.
- It has a unique identity and security structure
- It is exchanged peer to peer.
- It is universal – anybody can hold it.
- It does not yield any interest.
- Payments can be made by scanning QR codes.
- You can monitor your e-wallet activities.
Customers can move money from their bank account to their eNaira wallet with ease. They can also make in-store payment using their eNaira wallet by scanning QR codes.
Individuals can monitor their eNaira wallet, check balances and view transaction history with ease and the platform allows users to send money to one another through a linked bank account or card.
The cost for sending and receiving money faster, easily, will come at a very minimal costs, the CBN promises. There is always a transaction history and as such, customers can verify their payments anytime and anywhere.
On the eNaira official pages, the CBN stated that intra/inter financial institutions transactions are not only possible, they are faster and cheaper. In addition to this, customers can enjoy speedy transactions across boundaries and a hitch-free foreign exchange.
In conclusion, the eNaira serves as both a medium of exchange and a store of value, offering “better payment prospects in retail transactions when compared to cash payments”. It also has an exclusive operational structure that is “both remarkable and nothing like other forms of central bank money,” CBN notes in its official page.
According to the CBN, the objective is to see eNaira enable households and businesses to make fast, efficient, and reliable payments, while benefiting from a resilient, innovative, inclusive, and competitive payment system.
Is eNaira the same thing as Crypto currency?
No. Unlike Bitcoin and others which are crypto currencies, the eNaira is a digital currency issued by the government.
This difference has a big impact on the stability of the currency.
For example, the eNaira will maintain the same value as the Naira. Therefore, its value will not rise and fall the way crypto currencies does, also meaning it is not something to invest in to grow your fortunes.
The eNaira simply makes it easier to facilitate transactions digitally without needing to be backed by cash.
How TO USE/SPEND eNaira
eNaira is a digital form of cash and a direct liability on central bank of Nigeria.
Once you are able to access the wallet, you can use eNaira to send and receive money.
You can use it to make purchases and it’s more flexible and easy to make payments.
You can use eNaira to make transactions with Diasporas which guarantees you secure and faster transactions.
The eNaira will guarantee you:
- Instant settlement
- 99.9% service availability and reliability
- Low charges
- No dispensing errors
- No reconciliation issues
- Low charges
- Nationwide acceptance
- No dispensing errors
- Advanced data privacy and security
DOES eNaira HAVE RATE/PRICE
The eNaira is the same rate with Naira and therefore has no rate attached to it.
WHERE CAN I DOWNLOAD eNaira/HOW TO ACCESS IT.?
- To create an e-wallet account, for smartphone users, download the eNaira app (termed “Speed”) from either the Google Play Store or Apple Store and complete the registration process. For feature phone users, utilize USSD codes and follow the registration prompts.
- To resolve failed transactions, reach out to the customer support of the bank you selected when registering for eNaira through their available channels which include: phone, email, whatsapp, etc. If issues are not resolved within 48 hours, send an email to CBN’s eNaira Customer Support via helpdesk@enaira.com
NOTE: For a successful self-service enrollment on the eNaira Speed App, the mandatory requirements for some BVN details must match similar details attached to the consumer’s profile at the BVN database. Consequently, there is need for consumers to familiarize themselves with details of their BVN profile to identify and rectify gaps or stale information (especially email address) through their banks. The relevant information for a successful BVN validation check are: a) First Name; b) Last Name; c) Date of Birth (DD/MM/YYYY); d) State of Origin; e) Email; and f) Phone Number
