Business & Economy
E-Naira Meaning: 15 Important Things To Know About Nigeria’s E-Naira Digital Currency
Many Nigerian both home and abroad have been searching online for the E-Naira coin, e-Naira Nigeria, e-Naira wallet, e-Naira meaning, e-Naira currency, e-Naira digital currency, e-Naira CBN and e-Naira launch.
These are the 15 Most Important Things you Need to Know About Nigeria’s E-Naira Digital Currency.
In an effort to fortify the country’s economy, e-Naira coin is proposed by the Central Bank of Nigeria, the soon-to-be-launched digital currency.
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eNaira Meaning — What is e-Naira Digital Currency?
”e-Naira is a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira. 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. eNaira has an exclusive operational structure that is both remarkable and nothing like other forms of central bank money.”
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Well, many Nigerian are still in the unknown regarding the logic surrounding the recently publicized e-naira digital currency, however, Brand News Day Nigeria has compiled everything you need to know about e-Naira Nigeria in attention to detail, ranging from e-naira’s economic benefits to Nigeria, the benefits of e-naira to the continuous falling naira to the dollar exchange rate, E-naira security, what it entails and whatnot.
Recall that the Central Bank of Nigeria (CBN) said that its soon to be launched digital currency, e-Naira, will be Nigeria’s biggest project for the year which is to be launched on the 1st of October, 2021.
Below are the 15 Most Important Things You Should Know About Nigeria’s eNaira s Digital Currency
1. e-Naira will strengthen the stability of the banking system
as deposits become more diversified when more people are regulated. The CBN’s Deputy Governor, Operations, Mr Folashodun Shonubi, at the Chartered Institute of Bankers of Nigeria (CIBN) advocacy dialogue series 4 webinar held on Thursday in Lagos, said: ”e-Naira feeds our economy and provides greater value”.
2. CBDC Meaning: The Central Bank Digital Currency:
The enaira will be called CBDC which stands for the central bank digital currency. what e-naira meaning and what it works for. ”Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more,” Shonubi stated.
3. Proof of Ownership:
Anybody willing to have e-naira currency must have an account and be registered with any Nigerian bank. Similarly, you could either keep them in a bank account, or you keep them in an e-wallet (e-naira wallet) that contains the CBDC tokens’ which include an “anonymous” private key.
4. Vulnerable To hackers:
The Central Bank of Nigeria reaffirms that your e-wallets are secured and free from being hacked, in its words, the bank noted that “CBDC offers a safer option from the privately issued cryptocurrency which have been based on the possibility to enable cheaper transactions but have now been used for investment”.
5. Commercial Bank Involvements:
Unlike cryptocurrency, CBDC holders and owners must visit banks physically or using the online method before their enaira wallet could be approved. This posed an error on the Nigerian digital currency as it requires the hands of commercial banks before it could be operated. According to a report, the e-Naira would be maintained in an account, the account’s distributor (usually a commercial bank) must validate your identification before opening the account.
6. E-Naira Not Decentralized
Digital Currency requires KYC from most crypto exchanges in order to regulate the activities of individuals operating the crypto wallets. According to governments of different countries, this is done to tame illegal activities, lie money laundering.
As it was earlier stated, what differentiated cryptocurrency from other central banks currencies is decentralization. A virtual currency is said to be decentralized finance (DiFi) that do not require the permission of any individual or body before you can invest your finances.
7. How You Can Lose Your e-Naira Digital Currency if You Forgot Password
Amazingly, if you forgot your enaira wallet password there are high chances that you’re going to retrieve your wallet back if due process is followed. To restore your forgotten password, you will need to enter your cryptographic keys (Seed Phrases in crypto), you must ensure you write down your cryptographic keys in a secure place. The CBN as quoted, ”i\If an account owner forgets the password to the account, the money isn’t lost. Access to the account can be restored once the rightful owner has been identified beyond doubt.
8. It can be used for remittance which includes a cheaper diaspora remittance option:
This among other options the e-currency serves, you can make use of your Nigeria digital currency to make payment online including remittances and payments can be made by scanning QR codes.
According to CBN’s Deputy Governor, “For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic. I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”
9. E-naira currency doesn’t yield interest:
Unlike cryptocurrencies that give massive returns on investment (depending on your entry points) and wide lose (when BTC price drops or other factors) due to their volatility, the e-currency has a striking contrast as it doesn’t yield interest.
10. You can monitor your e-wallet activities:
As a virtual currency, you can easily monitor activities on your e-wallet irrespective of where you’re. This has a striking similarity to the world adopted cryptocurrency.
11. Account-Base Ownership Monitored by CBDC:
In a corresponding capacity, Account-based Ownership is regulated by the CBDC. That is, the problem with account-based ownership of CBDC is that there is no secret, no anonymous account holders as against the emerging markets (especially), millions of people who don’t have access to banks.
12. Higher Risks As Hackers Tend To Target CBDC Networks
The Bank of Canada stated that the most straightforward way to steal CBDC is to seize control of the majority of nodes in a distributed ledger, allowing criminals to control all tokens.
Recall that the Central Bank of Bangladesh account was successfully hacked into by hackers from countries like North Korea. This also posed a great threat to Nigeria as world technology keeps evolving.
According to a black hat hacker: “Despite the fact that quantum computing is a work of fiction, the key security gap for any CBDC already exists. It’s you, of course.
“I tell them that modern cryptographic methods are so secure that I’m not concerned about them being constantly hacked in order to take digital money. When the largest security risk to digital currency is sitting in front of the computer, criminals just don’t need to put in the effort.
13. You Can Lose All Your CBDC Tokens If…
Notably, as stated above that you can easily restore your accounts if you forgot your passwords, by entering your cryptographic keys for a forgotten password or answering some questions by commercial banks you register with. However, in cases whereby you misplaced your cryptographic keys and password the account cannot easily be restored posing a danger to lose your e-wallet. Similarly, you can also lose all your enaira currency if you use a weak password login; this will give hackers easy access to your e-naira wallet. Thus moving your digital currency becomes easier.
14. Fraudulent activities can be trace
The Central Bank said: ”The e-Naira would be maintained in an account, the account’s distributor (usually a commercial bank) must validate your identification before opening the account. These KYC standards are in place to prevent money laundering, terrorism financing, and other financial crimes”.
15: Nigeria Digital currency doesn’t stand as competition to commercial banks
According to Mr Folashodun Shonubi, “The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby ensuring the stability of the payment system in the long run. I expect in the coming days we will see rapid inclusion rates”.
