Home Finance E-naira digital currency Experts talking about Nigeria’s effort

E-naira digital currency Experts talking about Nigeria’s effort

900
1
enaira

E-naira digital currency; Experts talking about Nigeria’s effort

The CBN’s digital currency, called “e-Naira,” has prompted heated arguments since the apex bank issued a presentation on its use case to Nigerian banks, announcing an October 1 launch date.

The question of the real impact (if any) of the newly created e-Naira on the economy, as well as questions about how effective it would be in achieving the apex bank’s monetary policy and financial inclusion objectives, has popped up time and time again in Nigeria’s finance industry and among cryptocurrency and blockchain enthusiasts.

CBDC – What Is It All About?

When it comes to Digital currencies, the Central Bank issues CBDC, which is digital version of that country’s money.

It is the Central Bank’s direct liability for issuing it. It is not intended to replace cash or bank deposits, but rather to coexist as another kind of printed money.

CBDC (Central Bank Digital Currency) is classified into two types: retail and wholesale.

A “retail” CBDC would be utilized as a digital extension of cash by all persons and businesses, but a “wholesale” CBDC would be used as a settlement asset in the interbank market only by licensed institutions.

CBDC WILL BE ADOPTED IN WHAT METHOD

There are four steps in eNaira’s existence, according to the CBN’s document.

For the creation and storage of CBD, the CBN is responsible for its design, creation, and storage.

After being supplied to financial institutions and regulated service providers, it will be available to people and businesses through CBDC.

Customers of CBDCs have the option of transacting online or in person. A variety of payment methods will allow individuals and corporations to transfer value in real-time (e.g. mobile).

CBDC will continue to be monitored and maintained by the CBN as a result.

What are the opinions of financial experts on  E-naira digital currency?

“I think the e-Naira is a worthy idea in the sense that the global economy should be shifting to digital currencies in the next couple of years,” said Dr. Omobola Adu, a Research Analyst at GDL. We’ve heard from a number of countries about their ambitions to launch their own digital currency, so we can say that the CBN is on the correct track.”

He did not believe, however, that the introduction of a digital currency would boost the Naira’s value.

“The eNaira is simply a digital version of the Naira, thus it has no impact on the value of our currency,” he explained.

Dumebi Udegbunam, Fixed Income trader at UBA, welcomed the apex bank’s move as a strong stride as the country enters the fourth industrial revolution.

“He believes it is a positive step forward in furthering the banked population and encouraging the populace’s financial inclusion concept. He also stated that We are entering the next phase, which is the digital evolution, and being forward-thinking at this moment is critical,” he stated.

He hypothesized that the e-Naira would help international trade and boost the Naira, but that backward integration was still required, stating:

When it comes to the NGN index, there’s more to it than just receiving an e-Naira. Are there any implications for the flow of Naira in the diaspora, and would this help with trade between countries? Our export must increase in order to have an advantageous balance of payments. This might have a good impact on the Naira.

‘This CBN move may not have a direct impact on the Nigerian naira.’ Nevertheless, it would indirectly improve the ease of doing business, notably in the area of commerce, making Nigeria one of the first countries in sub-Saharan Africa to be ready for digital transformation.

When it comes time to adopt Nigeria’s new electronic currency, Internet and cyber connectivity would be a challenge, according to him.

As a result, Nigeria’s implementation will not be as effective as it should be due to challenges with power supply, internet connectivity (we have the world’s slowest internet and poorest networks). To prevent the CBDC e-naira from under- or counter-productive, the sectors immediately engaged should be enhanced.

Then there’s cyber security, which is a major concern. Cybercrime, according to a new research, would cost the world $10.5 trillion in damages annually by 2025, the report said. For the first time in history, the worldwide cost of hacking and cybercrime is expected to reach $ 1 trillion by 2020.

West Africa’s largest nation needs to invest in cyber security or collaborate with the proper experts to guide that heavily in order to avoid adding to these indices when the e-Naira is launched.

What the experts have to say about E-naira digital currency

QuickAir Networks Ltd’s Lead Developer, Chuks Nwaneri, supports the development toward an e-Naira. “he believes it is a positive thing and the proper action to do at this time,” . Nigeria should not be left behind while the globe innovates for all the good reasons. The central bank’s launch of the Digital Currency will, to a considerable extent, address some of the issues the country has faced over time, particularly in the areas of monetary and fiscal policy.”

Conclusion

Governor Godwin Emefiele of the Central Bank of Nigeria will be remembered as a visionary for his foresight, and history will examine the implementation of this enormous undertaking, to determine whether it was successful. Time shall tell.

READ ABOUT Only one Nigerian could be found as the world powerful person

Previous articleThe Wire actor Michael K Williams 54 has passed away
Next articleUnited Breeds Foundation Walk Against Drugs
An Information technology (IT) professional who is passionate about technology and building Inspiring the company’s people to love development, innovations, and client support through technology. With expertise in Quality/Process improvement and management, Risk Management. An outstanding customer service and management skills in resolving technical issues and educating end-users. An excellent team player making significant contributions to the team, and individual success, and mentoring. Background also includes experience with Virtualization, Cyber security and vulnerability assessment, Business intelligence, Search Engine Optimization, brand promotion, copywriting, strategic digital and social media marketing, computer networking, and software testing. Also keen about the financial, stock, and crypto market. With knowledge of technical analysis, value investing, and keep improving myself in all finance market spaces. Pioneer of the following platforms were I research and write on relevant topics. 1. https://publicopinion.org.ng 2. https://getdeals.com.ng 3. https://tradea.com.ng 4. https://9jaoncloud.com.ng Simeon Bala is an excellent problem solver with strong communication and interpersonal skills.

LEAVE A REPLY

Please enter your comment!
Please enter your name here