Femi is a freelance content writer with adequate experience creating content for online and offline media across different niches including technology. When he is not writing, you can find him trying out new technology or reading.
The Central Bank of Nigeria (CBN) has reportedly announced that its e-naira digital currency will have the status of a legal tender and it will also be a non-interest-bearing asset. In addition, a limit will be imposed on all customer transactions and value-based transactions.
According to a Nairametrics report, a document that was sent to banks by the CBN recently has revealed all about the e-naira’s design as well as its operational module. In the same document are details about the duties and how they are assigned to each of the participating parties in the e-naira program.
The report explains that the CBN itself will have the responsibility of rolling out the first part of the e-naira. The rollout will involve the issuing, distribution, redemption, as well the destruction of the currency.
By the second stage, which is tagged the Financial Institution Suite, “licensed financial institutions will be able to request currency or issue stablecoins.” They will also “manage digital currency across branches, KYC, identify and AML compliance capability.”
Then at the third stage, the Nigerian government will become involved where it will be responsible for processing digital payments sent to and received from citizens and businesses. At the fourth stage will be merchants who will ensure that “low-cost payment and business management software, POS, remote payment solutions, online capabilities, transaction analysis and reconciliation”, are provided. The last stage will be known as the Retail Consumer Suite and will be focused on the architecture of the digital currency.
Meanwhile, another report by Cryptotvplus has claimed that the CBN is in the process of launching a wallet for its digital currency. According to the report, the wallet will make it possible for the CBN to meet its deadline of launching the e-naira by October 1, 2021 (Nigeria’s Independence Day). However, it has been confirmed that the wallet will in no way compete with existing banks. Instead, the report says it will “serve as a means to transact value, pending when banks and other innovators can provide their own wallets.”
The wallet will be known as the Speed Wallet and will have three tiers. The first tier is designated for Nigerians without bank accounts. This tier can only be accessed, however, upon the submission of “a passport photograph, name, place & date of birth, gender, address and phone number.”
Tier-two wallet users on the other hand must already own an account with one of the existing banks. Users at this level “can only send and receive $400 [N200,000] daily with a cumulative balance daily of $1,000. [N500,000.]” The minimum requirement for this level is a Bank Verification Number (BVN). The third tier allows transacting daily to the tune of $2,000 with a cumulative balance daily of $10,000. Having a BVN is also the minimum requirement.