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CBN lists the benefits for its digital currency, e-Naira

Nigeria’s apex bank, the CBN has made known that its about to be launched digital currency, e-Naira, will help in making the banking system become more stable as deposits become more diversified when more people are banked.
It is also the aim of the bank to use digital currency in making it less difficult for the banking system to comply with existing laws such as anti-money laundering, customer protection against fraud, and ensuring the safety and stability of the payment system.

The CBN’s Deputy Governor, Operations, Mr. Folashodun Shonubi, made this known at the Chartered Institute of Bankers of Nigeria (CIBN) advocacy dialogue series 4 webinar held on Thursday in Lagos.

The event was themed, ‘Central Bank Digital Currencies: Insights for the 21st Century Banker.’

These are the words of the Deputy Governor, “The Central Bank in its implementation has ensured the e-Naira feeds our economy and provides greater value.

“The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an
electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital
currencies entail the same promises and even more.

“CBDC offers a safer option from the privately issued cryptocurrency which have been based on the possibility to
enable cheaper transactions but have now been used for investment.

“The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby
ensuring the stability of the payment system in the long run.

I expect in the coming days we will see rapid inclusion rates.

“For banks in developing nations, it will enhance their liquidity, efficiency in national remittances, and challenge the
high cost of remittances as the world rebounds in the post-pandemic. I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”
Lamido Yuguda, the Director-General of the Securities and Exchange Commission (SEC)
Speaking at the event, Lamido Yuguda, the Director-General of the Securities and Exchange Commission (SEC), and one of those who played a major role, speaking at the event said that the digital currency would help in improving the capital market when combined with vibrant inter-developmental policies, leading to financial inclusion, especially in the capital market.

Yuguda also said, “This is an opportunity for the fintech market to connect our people to existing opportunities in the
financial market, connecting our people with investment opportunities in other climes. Once we do that, we would
grow our market, Nigeria has 200 million people. We are blessed with a hardworking youthful population.

“This capital market would in turn finance the necessary infrastructure investment that this country needs today.”

Recall that the CBN had on July 22, 2021, through a private webinar outlined its digital currency initiative which will be launching on October 1st, 2021. Read full story here.

 

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