The Nigerian Central Bank has issued thorough and formal guidelines for the country’s newly established digital currency, eNaira. President Muhammadu Buhari declared the formal usage of the new era electronic version of the nation’s local paper money on Monday, October 25, according to Validnewstoday. The Vice-President, Prof. Yemi Osinbajo, and the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, were also present for the unveiling.
The event took place at the States House in Abuja. Only a few hours after its launch, the e-naira fast wallet program for individuals was downloaded by over 5000 people, according to validnewstoday.
The CBN stated in its guidance that all transactions originating from the E-Naira platform will be free for the first 90 days of use, beginning October 25.
Charges, as defined in the guide to charges by banks, other financial and non-bank financial institutions, would become effective after 90 days, according to the apex bank.
Individuals’ funds on the E-Naira platforms are securely protected, according to the CBN, thanks to two-factor authentication and other safeguards.
According to the CBN, all banks would be automatically onboarded, while merchants will be onboarded after they download the app, and people will be onboarded independently.
Financial institutions must have one treasury E-Naira wallet to store eNaira received from the CBN E-Naira stock wallet, according to the apex bank’s guidelines.
It does, however, ensure that the E-Naira sub-treasury can be set up for bank branches that are linked to it, and that it can also fund it from its single treasury account.
Financial Institutions (FI) may create eNaira branch sub-wallets for its branches and finance them from its single eNaira treasury wallet with the CBN, and FI may create eNaira branch sub-wallets for its branches,
“The eNaira branch sub wallet shall be funded from the treasury E-Naira wallet,” the regulation continued.
E-Naira Merchant speed wallets may only be used to receive and send eNaira payments for goods and services.” End-users will be able to transact on the E-Naira platform using eNaira fast wallets.
Maximum number of transactions per day:
Tier 0 transactions are capped at 20,000 per day, with a maximum balance of 120,000. Only a personal phone number without a validated National Identity Number is required for this tier.
Tier 1 transactions are limited to 50,000 per day, with a daily maximum amount of $300,000.
Tier 2 and Tier 3 categories have daily transaction restrictions of 200,000 and 1 million, respectively, as well as maximum balances of 500,000 and 5 million.
The E-Naira, according to Validnewstoday, will complement currency as a less expensive, more efficient, widely accepted, safe, and trustworthy mode of payment and store of value.
According to the recommendations, the digital currency will increase monetary policy efficiency, strengthen the government’s capacity to deploy targeted social interventions, create alternative less costly avenues for government revenue collection, and raise remittances through official channels.
The guidelines seek to provide simplicity in the operation of the eNaira, encourage general acceptability and use, promote low cost of transactions, drive financial inclusion while minimizing inherent risks of disintermediation or any negative impact on the financial system,” the regulatory further noted.