e-naira is the digital form of naira, issued by the Central Bank of Nigeria, thereby, making it a legal tender. The e-Naira was developed by the fintech company, Bitt, based in the Caribbean. With this development, Nigeria has become the first in Africa to develop a digital currency, and there is a need to create awareness on how it operates.
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e-Naira wallet will function just like a bank account, hosting the digital currency. The wallets will be created by licensed financial institutions CBN authorizes, and will be responsible for ID verification, payment processing, among others.
e-Naira will maintain the same value as physical currency, and this is one of the differences it has from cryptocurrency. It is regulated by CBN and is not likely to fluctuate or subject to the rise and fall of cryptocurrency.
The effect of e-Naira in the Nigerian economy is that it will have an impact on the economy, promoting financial inclusion and accelerated means of payment processes. It will limit the barriers of cross border trade, which would impact trade relations positively. This also points to the fact that this initiative is people oriented, and is making use of technology to connect businesses and individuals from all across the world.
The benefits of e-Naira include:
- Fostering economic growth by enabling access to capital and financial services.
- Reducing the likelihood of fraud due to the fact that it is highly regulated.
- It takes away the limitation of paper notes, like forgery, theft and others.
- It will aid revenue collection and reduce the cost of handling the physical case.
- Further impact of the use of e-Naira is that it will reduce costs of transactions, as things are likely to become cheaper with outrageous charges taken off, as opposed to the use of cash.
- It takes aways the use of middlemen, as fund owners can access and do transactions with their money easily.
- It also helps ease the burden of security and management of banking details, as this is a transparent system where money transactions are traceable.
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e-Naira makes great use of automation for expense tracking and reports development for non-governmental projects. If duly implemented, it can in turn, serve as a means to demand accountability of taxes and ensure its judicious use.
With this accountability in business, it becomes easy for business owners to access loans and seek support in funding, as they can expressly reveal how funds are being used with e-Naira. It is projected that e-Naira will be a great break for the government and people.
e-Naira wallet will also function like bank application, where you can easily view your transaction details, history and engage in transactions at very minimal costs. Payments can easily be verified from anywhere in Nigeria, and possibly across the world.
The objective of this initiative remains to provide an efficient, speedy and reliable payment system, and with the creation of awareness on this initiative, the results will be very promising.
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