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Confused about the newly launched eNaira? Here are things you should know about the new Central Bank Digital Currency - eNaira and how it affects you as an individual and a business owner

President Muhammadu Buhari officially launched the Central Bank Digital Currency (CBDC) - eNaira on Monday 25th October, 2021.

The Nigeria's eNaira is said to be the first ever African Digital Currency.

Buhari said the digital currency and the blockchain technology it uses can foster economic growth and increase the GDP of Africa's biggest economy by $29 billion over the next 10 years.

Nigeria’s Central Bank (CBN) Governor Godwin Emefiele said that around 500 million eNaira (1.21 million) have already been minted in lieu of the digital currency going live.

In a press release on Saturday, the CBN said the eNaira’s launch “marks a major step forward in the evolution of money and the CBN is committed to ensuring that the eNaira, like the physical Naira, is accessible to everyone.”

CBDCs are rapidly gaining popularity worldwide, and Nigeria is the first African country to officially launch a sovereign-backed digital currency pilot.

With a population of 211 million, Nigeria’s CBDC trial now becomes the second largest behind China’s digital yuan. On top of that, over 62 percent of Nigerians are aged 24 or under, making the eNaira available to a largely digitally native population.

Development of the eNaira was carried out by fintech company Bitt, whose Digital Currency Management System is also behind the East Caribbean Central Bank’s digital currency DCash.

Below are some of the proposed benefits of the newly launched eNaira to individuals, customers, business owners and the government.

•The eNaira is said to be a platform for People-Oriented Digital Currency, leveraging technology to connect individuals and businesses for easy trading.

•The eNaira is expected to increase economic growth by offering easier access to capital and financial services which will increase economic activities at low/no interest transaction rate.

•Financial Government aids is also likely to get directly to the people through direct funding from CBN to their eNaira wallet, thus cutting away the activities of middlemen.

•The eNaira equally promises secure and traceable banking where one can save money, send money and save time.

•For business owners, the eNaira according to the CBN will make customer payments very easy and cheap both from within and outside the country.

•Business owners who use the eNaira wallet can also get Government aids and loans directly from the CBN because the CBN would have all the eNaira Wallets of everyone who registers.

•The government is likely to experience an increase in generated revenue through the eNaira.

•Customers can easily move their money from their bank accounts to their eNaira wallet. They can also make payments with their eNaira wallet through scanning of QR codes.

•Having your money in the eNaira wallet will save you the stress of carrying physical cash.

•Customers can send and receive money into their eNaira wallet with very minimal charges, the CBN promised.

The CBN also noted that another motive behind the launching of the eNaira is to ensure a richer Government and a richer People.

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