BY KENNETH EZE
The Central Bank of Nigeria has issued regulatory guidelines on the eNaira which was unveiled earlier today (Monday).
The Director, Financial Policy and Regulatory Department, CBN, Chizoba Efobi, in a circular marked, FPR/DIR/PUB/CIR/001/023, dated October 25, stated, “The guidelines seek to provide simplicity in the operation of the eNaira, encourage general acceptability and use, promote low cost of transactions, drive financial inclusion while minimising inherent risks of disintermediation or any negative impact on the financial system.”
The guidelines, effective Monday October 25, read that “The eNaira is the digital form of the Fiat currency (Naira), issued by the CBN in line with Section 19 of the CBN Act.
“It is a direct liability of the CBN, a legal tender and will form part of the currency-in-circulation.
“The eNaira will complement cash as a less costly, more efficient, generally acceptable, safe and trusted means of payment and store of value.”
The apex bank expressed optimism that the digital currency would enhance policy effectiveness, government’s capacity to deploy social interventions, while also providing “alternative, less costly channel for collection of government revenue(s) and boost remittances through formal channels.”
The policies were conveyed in a circular to all stakeholders titled, ‘Regulatory guidelines on the eNaira.’
The Point reports that the launch of the eNaria makes Nigeria one of the first countries in the world to adopt a CBDC.
