The president of the African nation announced the launch of the legal tender digital currency: the e-naira. Two wallets got launched, and 500 million e-naira have already met issuance.
Nigeria launched its e-naira digital currency, the first CBDC of a country on the African continent. Nigerian President Muhammadu Buhari announced the official release of the Nigerian digital currency during a presidential event at the Abuja Government House on Monday.
The launch of a digital currency arrives after several years of study of a digital financial system led by the CBN. The e-naira project got initially announced in 2017 and has been making further progress this year.
The coin was scheduled to launch on October 1 but got delayed in deference to the 61st anniversary of Nigeria’s independence that same day.
The Official Launch of e-Naira and Digital Wallet
Designed to complement Nigeria’s legal tender physical currency, the e-naira got developed by fintech company Bitt, whose Digital Currency Management System (DCMS) is also leading the Eastern Caribbean CBDC.
According to the report, the official launch of the Nigerian CBDC included the release of two wallet applications designed for users and merchants: eNaira Speed Wallet and eNaira Merchant Wallet. Both apps are currently available for free download from the Google and Apple app stores.
In a previous report, the central authority had clarified that the e-naira wallet did not intend to replace the country’s banks. The report also highlighted that the application would have several tiers; One of them designed to serve Nigerian citizens lacking a bank account.
In any case, as indicated, any level users must show registration data such as identity, passport, address, and telephone number. In Monday’s statement, the country’s central bank reported a new official website for the currency, where more details about the project appear.
According to a VOA report, the e-naira website had more than 1 million visits in the hours leading up to the initial launch, indicating massive interest among citizens. CBN Governor Godwin Emefiele highlighted that 500 million e-naira (valued at around the US $ 1.21 million) have already met their production.
The First Nation in Africa with a CBDC
In the first stage of the project, the CBN is responsible for the e-naira’s deployment, including the issuance, distribution, redemption, and even the destruction of the currency. But the launch is just the beginning.
According to the statement, the start-up will be followed by “a series of modifications, capabilities, and improvements to the platforms” as the country enters “a new era consistent with global financial progress.”
Nigeria has become the first African nation and one of the few countries to develop a CBDC. Countries like the UK, Canada, India, and Jamaica are studying the development and issuance of a digital currency. Meanwhile, China is the most advanced in the race to issue a CBDC.
Although some nations of the African continent are making progress in this matter, South Africa recently launched a test of CBDC for cross-border payments; Ghana’s central bank hopes to release its currency soon.
By: Jenson Nuñez
