The Central Bank of Nigeria (CBN) has said that Nigeria’s digital currency, E-naira will make transactions more cheaper to conduct with.
Godwin Emefiele, CBN Governor, states this in Abuja at the end of the bi-monthly Monetary Policy Committee (MPC) meeting.
Emefiele said: “Our digital currency which is tagged e-naira will certainly come into operation in October and we are working very hard for this.
“We believe transactions will be cheaper and more efficient as there will be less conflict.”
The CBN governor said the economy is going digital and “cash cannot play in that space,” adding that “e-naira which will represent the digital equivalent of cash will be used as fiat currency for transactions”.
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.
“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.
“Then you have N2 million digital currency which you can spend across countries”.
He noted that “the use of cash is declining all over the world,” noting that “with the advent of digital currency, more and more people are adopting the use of electronic money to facilitate little commerce”.
Emefiele said cryptocurrencies are private monies that are not regulated, therefore using them is a personal decision.
“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,” he said.