In October 2021, the Nigerian government announced that it will launch its own cryptocurrency. And now they have announced the guidelines. This is everything you need to know about Nigeria e-naira with its name 'speed wallet.'
1. They will regulate,design and issue the Nigeria digital currency (e-Naira).
2. On 1st October, they will launch the Central Bank Digital Currency (CBDC).
3. Both bank account and non-bank account holders can access the e-Naira.
4. The CBN is about to launch a wallet for its digital currency. This wallet will enable the CBN to successfully launch their e-naira by October 1, 2021.
5. There will be three tiers to the wallet, which is also known as the Speed Wallet. The tier 1 wallet is available for use by anyone without a bank account. It also has a ₦50,000 transfer restriction and a daily maximum of ₦300,000 cumulative balance.
6. To open this tier 1 wallet they have a minimum requirement as a National Identity card (NIN).
7. The minimal requirement for tier 2 wallets users is an existing bank account with a connected bank verification number (BVN). They will restrict users to send and receive ₦200,000 daily and have a balance of ₦500,000.
8. Tier 3 wallet users have a daily transaction limit of ₦1,000,000, with a maximum amount of ₦5,000,000. This wallet category requires at least a BVN.
9. On merchant-level wallets, transaction limitations are similarly set at ₦1,000,000 per day, while there are no limits on how much money individuals can have in their accounts.
10. User-to-merchant and peer-to-peer wallet transactions are free on the digital currency infrastructure.
How can I use e-Naira?
To transact with the e-Naira, you must first download the speed wallet and then verify your account using either your phone number, National Identity Number (NIN), or Bank Verification Number (BVN). After that, you can start using the wallet. You will be able to send money through Peer-to-Peer (P2P) transactions through your wallet to other wallet holders, as well as Person-to-Merchant/Business transactions, where you (as e-Naira users) can pay for things at merchants that have the e-Naira wallet and vice versa.
Government Ministries, Departments, and Agencies (MDAs) would be onboarded and use the e-Naira to make remittances to their personnel and members of the public once the e-Naira has gained widespread adoption, as well as how citizens can pay MDAs using the e-Naira.
Conclusion
Following the launch, Nigerian banks will be able to invite all of their customers to sign up for the e-Naira, which will contain all of the required validation and verification procedures. Although it is possible to argue that the implementation of CBDC helps in the better monitoring of criminal transactions within the country. In the real world, a Nigerian CBDC will be too expensive to install and may become obsolete rapidly when compared to other systems. The banking system is capable of processing transactions as a kind of payment. Spending time and resources on important issues like how to control double-digit inflation is a better use of the central bank's time and resources.
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