The Central Bank of Nigeria (CBN) has reportedly confirmed that its digital currency, e-naira, will be legal tender and non-interest bearing asset status. In addition, a limit for customer transactions and value-based transactions will be introduced.
Five-step start
According to a report from Nairametrics, the new revelations about the design of e-naira as well as the operational module are contained in a document recently sent to the banks by the CBN. The same document also gives details of the tasks assigned to each of the parties participating in the e-naira program.
As explained in the report, the CBN itself will be responsible for the first part of the e-naira rollout. This includes the issue, distribution, redemption and destruction of the currency. In the second phase, known as the Financial Institution Suite, “licensed financial institutions can request currencies or issue stablecoins”. You will also “manage digital currencies across branches, KYC, identification and AML compliance capabilities”.
The Nigerian government will be involved in the third phase, where it will “process digital payments sent to and received from citizens and businesses”. At the fourth tier are merchants who are expected to provide “low cost payment and business management software, POS, remote payment solutions, online functionality, transaction analysis and reconciliation”. The final tier, also known as the Retail Consumer Suite, focuses on the architecture of the digital currency.
‘Speed Wallet’
Meanwhile, a separate report states that the CBN is now on its way to launching a wallet for its digital currency. According to the report, this wallet will allow the CBN to achieve its goal of bringing the e-naira to market by October 1, 2021. However, this wallet will not compete with existing banks. Instead, the Cryptotvplus report says it will “serve as a means of transacting value until banks and other innovators can provide their own wallets”.
The wallet, also known as the speed wallet, will have three levels. The first level is intended for Nigerians without bank accounts. However, access is only granted by stating “passport photo, name, place and date of birth, gender, address and telephone number”.
Tier two wallet users, on the other hand, must “have an account with an existing bank”. Users at this level “can only send and receive US $ 400”. [N200,000] daily with a cumulative daily credit of $ 1,000. [N500,000.]”The minimum requirement for this level is a bank verification number (BVN). The third tier allows daily transactions of USD 2,000 with a cumulative daily balance of USD 10,000. A BVN is the minimum requirement.
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