E-Naira: Emerging Nigerian Electronic Currency, What You Need To Know
Afnews Editor
Jul 28, 2021
The Central Bank of Nigeria (CBN) has said that transactions will be cheaper to conduct with Nigeria's digital currency, e-naira.
READ ALSO: Wike To Amaechi: You Are Total Failure Who No Longer Has Access To Aso Rock
The Governor, Godwin Emefiele, spoke in Abuja at the end of the bi-monthly Monetary Policy Committee (MPC) meeting.
READ ALSO: Pastra Arinze Etie Explains How Governor Otti is Ending Revenue Leakages in Abia State
He said: "Our digital currency which is tagged e-naira will certainly come into operation in October and we are working very hard for this.
READ ALSO: Suspects Selling Counterfeit N1000 Notes Arrested In Enugu | READ DETAILS
"We believe transactions will be cheaper and more efficient as there will be less conflict.ÔÇØ
He said the economy is going digital and "cash cannot play in that space,ÔÇØ adding that "e-naira which will represent the digital equivalent of cash will be used as fiat currency for transactionsÔÇØ.
READ ALSO: Oil-PRODUCING STATE: Gov. Bello Makes Promises As Kogi Receives First Derivation Allocation
On how the e-naira will work, Emefiele said: "If you choose to convert some of the naira in your account to e-wallet or digital currency, we will support that.
READ ALSO: CBN Makes New Policy, Limits Weekly Withdrawal To N100K | READ DETAILS
"When this starts the CBN will move some of the balances in CBN to those banks into digital currency. You go to your bank, you decide to move N2 million from the N10 million you have in your account to digital currency they will debit your account and move it into your e-wallet.
READ ALSO: Bring Back Cashless Policy, Naira Will Increase Value - Yul Edochie Begs Tinubu
"Then you have N2 million digital currency which you can spend across countriesÔÇØ.
READ ALSO: Senate Dangles Report On Vacation Of Citizen's Watchlist By DSS
He noted that "the use of cash is declining all over the world,ÔÇØ noting that "with the advent of digital currency, more and more people are adopting the use of electronic money to facilitate little commerceÔÇØ.
READ ALSO: 7 Online Money Traps Young Nigerians Are Falling Into
He said cryptocurrencies are private monies that are not regulated, therefore using them is a personal decision.
READ ALSO: How CBN's New Policy Will Force Banks To Instantly Refund Failed ATM Transactions
"if you decide to use them, it means you are taking your risk. If you make your money, we will wish you good luck but if you lose your money, we will laugh at you,ÔÇØ he said.
READ ALSO: Nigeria's Economy Set to Grow 4.7% in 2026 - Edun Projects Job-Rich, Investment-Led Growth
At the end of the MPC meeting, members of the Committee decided by a unanimous vote to retain the Monetary Policy Rate (MPR) at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent, and retain the Liquidity Ratio at 30 per cent.
READ ALSO: Fubara opens up on who Wike is to him | Read Details
Emefiele said: "The MPC was delighted that inflation had begun to trend downwards, while output growth had remained positive.
READ ALSO: Wike To Amaechi: You Are Total Failure Who No Longer Has Access To Aso Rock
"The Committee, however, was of the opinion that there was a need to continue to put in place policy measures that will further and faster drive down inflation, while at the same time accelerate output growth to levels above population growth rateÔÇØ.
READ ALSO: Pastra Arinze Etie Explains How Governor Otti is Ending Revenue Leakages in Abia State
MPC, he said, believes "that there is the need to continue to use its tools that had been adopted so far, even in a more aggressive manner.ÔÇØ
READ ALSO: Suspects Selling Counterfeit N1000 Notes Arrested In Enugu | READ DETAILS
"The MPC, therefore, encourages the CBN to continue using its existing administrative methods to rein in inflation by the use of its discretionary Cash Reserve Ratio (CRR) policy to mop-up liquidity from the banking system as the need arises,ÔÇØ Emefiele said.
Related Stories
Nigeria's Economy Set to Grow 4.7% in 2026 - Edun Projects Job-Rich, Investment-Led Growth
Pastra Arinze Etie Explains How Governor Otti is Ending Revenue Leakages in Abia State
How Trump's Threat Triggered N2.8 Trillion Stock Market Crash In Nigeria - Investors Panic As Confidence Plummets
How CBN's New Policy Will Force Banks To Instantly Refund Failed ATM Transactions
Bring Back Cashless Policy, Naira Will Increase Value - Yul Edochie Begs Tinubu
7 Online Money Traps Young Nigerians Are Falling Into
""
— Afnews Editor