Cryptocurrency

5 Important Things To Know About eNaira Following CBN Launch

5 Important Things To Know About eNaira Following CBN Launch

On Monday, Nigeria’s Central Bank announced that it had launched a digital currency eNaira and it was unveiled by President Muhammadu Buhari at the statehouse in Abuja.

At the launch event CBN governor Godwin Emefiele said 500 million ($1.21 million) worth of the CBDC had already been minted.

The currency which holds the same value as Nigeria’s Naira is now available for the use of millions nationwide.

Before you go ahead with the use of the digital currency, here are 5 things that you should know about the eNaira.

1. It is a digital Naira

The eNaira is a digital form of Nigeria’s legal tender-Naira. It is issued by the CBN and can be used for payment nationwide.

Also, the coin was built on a blockchain open ledger technology which prevents it from being duplicated or faked.

Bitcoin

2. eNaira is not a cryptocurrency

Contrary to assumptions made by many, the e-Naira is not a cryptocurrency like Bitcoin and Ethereum.

Cryptocurrencies are decentralized, meaning that they are not backed by any established authorities. While cryptocurrency values might fluctuate, the eNaira is pegged to the value of Naira.

3. Wallet

The e-naira wallet is required to home and uses the digital currency. The coin can only be accessed on wallets created by the apex bank.

4. Transaction Limits

Like regular bank accounts, the eNaira wallet also has transaction and wallet limits which are categorized in different tiers.

Tier 0- Daily transaction limit of N20,000.00 and speed wallet limit of N120,000.00.

Tier 1- Daily transaction limit of N50,000.00 and speed wallet limit of N300,000.00.

Tier 2- Daily transaction limit of N200,000.00 and speed wallet limit of N500,000.00.

Tier 3- Daily transaction limit of N1,000,000.00 and speed wallet limit of N5,000,000.00.

eNaira

5. Charges for the platform

According to the CBN, transactions on the eNaira platform will be free for the first 90 days. However, it would later revert to charges as outlined in the Guide to Charges by Banks.

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