eNaira API

The CBN just announced that they’ll be releasing some guidelines on the e-Naira aka, Nigeria’s, digital currency to make eNaira as Mode Of Payment.

If you’ve been online at all in any moment, and you of course live in Nigeria or maybe are Nigerian well, you definitely Would have seen something about the e-Naira, and this should concern you…

so. Why is it being launched and what should you know about it. ? This is the video to watch. In this video I’ll explore what the e-Naira is and is not what you should know about it and what the effects might actually be for you or every single Nigerian, both positive effects and negative effects. .

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What is the e-Naira So first off?

What is even the e-Naira And what is the e-Naira not. ?


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The e-Naira is simply Nigeria’s Digital Currency. It’s, the Naira but Digital. As simple as that.

It is not a cryptocurrency, but it uses technology for Digital Currencies from a company called Bitt Inc.

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. It is also called a CBDC which means Central Bank, Digital Currency and countries like China have one too. .

Everyone who lives in Nigeria will surely have to spend Naira to access basic goods and services. The same way, everyone in the US has to spend dollars the same way.

British people have to spend pounds and Ghanians have to spend Cedis. By the way, Ghana is also creating its own Digital Currency.

I didn’t know that until I started to research for this video so yeah. , The e-Naira is set to launch in October the 1st of October, and that day is also the day of Independence for Nigeria. So it just made sense that they would want to do it.

Then. Or Maybe I’m wrong. , But That would really be interesting to see, though, What do you guys think Leave a comment below. ? Why did Central Bank Propose this In May I made a video about the e-Naira or Nigeria’s Digital currency. You see just 2 months before May, or in February of 2021 the CBN stopped a major link in cryptocurrency, which is banks.

It had the effect of banning cryptocurrency because, of course, in the multiple circulars, Nigeria did not regard cryptocurrency as money, and they said that banks must not touch cryptocurrency or enable it in any way shape or form.

Like I said, 2 months later, the Governor of the Central Bank of Nigeria, the CBN governor, mentioned that Nigeria will be considering its own digital currency. At the height of the “crypto ban”.

Nigeria was like the 2nd in the world with regards to volume of cryptocurrencies being traded on Paxful’s platform. It showed that the parallel market was and is still very strong and present in Nigeria, and there was alot that was putting pressure on the value of the Naira currency.

Basically, one major way Nigeria earns foreign exchange apart. Oil is remittances or people sending in Dollars pounds and such into Nigeria with Bitcoin you won’t be able to control who’s, sending what in and out of the country and if it took over it could render financial institutions somewhat less useful.

However, I don’t see that happening. Any time soon, as they definitely have to work hand in hand. The way they currently are now, but we never know. . We are also facing a major dilemma on the exchange rate front. at this point we have hit a 530 Naira to $ 1. All time high.

One of the reasons we couldn’t get a $ 1. 5 Billion Dollar loan in Nigeria from the World Bank in June of 2021 was because of our exchange rate system.

There are 2 kinds, as far as I know, the Fixed and Floating Exchange rate system. . Nigeria operates on a Fixed Exchange rate that also has a parallel market.

What this means is that the fixed rate is the official rate right now, it’s 411 and the parallel rate is 530, as at the time of making this video. The world bank linked the Loan approval for Nigeria to having a predictable exchange management system.

In contrast to this, a floating exchange rate is one that is determined by demand and supply, and many experts think that the 530 naira to a dollar is a closer rate than 411.

However, Nigeria would not accept this as it could be bad for the economy and a devaluation just seems like an unfavorable strategy.

This brings us to today, in September, less than a month before the e-Naira launch in October, and Nigeria has started to lay down some ground. Rules. , But before we talk about that, who is even making this e-Naira Did the CBN magically become so advanced in the art of digital money? Making Well not really. , Who is making the e-Naira A company called Bitt Inc in partnership with the Central Bank, would be creating this digital currency.

This e-naira. Let’s bring our favorite neighbors in Ghana, which is also considering its e-Cedi it’s, being built by a competitor of the guys. Building the ones for Nigeria. I’ll leave a link below if you’re interested in that. It’s by a German securities printing company called G+D. . The company building ours is from Barbados and they’re Bitt Inc Who or what is Bitt Inc and why are they? The ones building Nigeria’s digital currency Bitt Inc. is a fintech company based in Barbados that uses blockchain and distributed ledger technology to enable safe p2p transactions with seamless mobile money.

Now, if all that sounded like rubbish to you…Basically, their main objective is to develop payment systems for people, companies, banks and central banks using blockchain technology as well. . The reason the CBN gave for the selection of Bitt Inc was they. They were infact selected from highly competitive bidders.

I believe the number of bidders were over one hundred, but they claimed to have chosen the company due to tested and proven digital currency experience, which is already in circulation in several Eastern Caribbean Countries. . They also stated that they were chosen because they helped successfully launch The Central Bank Digital currency for the Eastern Caribbean Central Bank in April 2021. , So they have infact minted digital currency for a country. Before. . One thing to note is that the company Bitt Inc would have to register in Nigeria as a Limited Liability Company.

Basically, a business and the Central Bank will infact own a stake.

A portion or shares in their Nigerian company. CBN currently does own shares in some of the other companies managing our financial payment system like NIBSS or Nigeria, Inter-Bank Settlement System. . I think this helps so they can have a vote in how the currency for the Nigerian people is being managed, and one private company would not have the upper hand in determining the lives of our people. Anyway, if you’re liking this video so far a thumbs up.

Would really be amazing, as it would help more people become aware of what we’re sharing here. Now? What is the e-Naira process like? What is the e-Naira process? First things? First, there will be different levels or tiers of wallets and there will be Launch stages. I’ll talk about these two things in a bit, but first, how would this happen? Let’S talk about Stages.

In Stage 1, The CBN says it will be responsible for issuing distribution, redemption and destruction of the e-Naira currency. . In the second stage we have the Financial Institution Suite where licensed financial institutions, like Banks, will be able to request and issue stable coins.

So yes, the e-Naira will have a stable rate and not be able to bear interest like cryptocurrency. When comparing it to something like the dollar. For instance, the e-Naira will equal the prevailing dollar rate at the time and probably not the parallel market rate, but that’s a far stretch when you consider the existence of P2P trading. . The CBN says that, at this seconds stage these licensed financial institutions will also manage the digital currency across branches. They will do the KYC or Know Your Customer registration and AML or add anti-money laundering compliance.

What does this mean for commercial banks? Well, commercial banks right now have a large number of products. I’ve been able to use many VULTE. Similarly, with an app like VULTe, you get to do a lot of these things already, but now, with the e-Naira it’s more like the Government’s super app. In the 3rd Stage, the Nigerian government will become more involved and will process digital payments sent and received from citizens And businesses.

At Stage 4, we should expect Merchants who are expected to provide low-cost payment and business management. Software, POS, online transaction and reconciliation. The 5th and Last Stage would be the Retail Consumer Suite, which will focus on the architecture of the digital currency. . What about the Wallets now there’s, also different levels or tiers of the wallets. , Because the deadline is really close, there will be an existence of what is called a Speed. Wallet.

These wallets are to enable CBN meet their October, 1st Deadline. . They say: it’s, not a competition to existing banks, but another means of transaction until a time where Other banks can plug into the Digital Wallet with their own infrastructure or technology.

So what are the different wallet levels? The first tier allows users with no bank account to use the Speed Wallet. . However, they must submit a passport, their name place of birth, gender address and phone number. . This first tier will have a daily limit of N50,000 for sending and receiving, and the minimum requirement for using a first tier wallet is a phone number which will be validated as a National Identity, Number or NIN. So if you haven’t registered for your NIN, you might probably want to do so.

The second tier or Tier Two wallet requires that the users must own an account with an existing bank. . At this level, they can send and receive 200,000 daily, with a cumulative balance daily of 500,000 aka. The total sum of transaction you can make in a day would be 500,000. . The minimum or lowest requirement is a BVN or bank verification number.

The third tier allows for daily send and receive transactions up to 1,000,000 with a cumulative Balance daily of 5,000,000 meaning you cannot go beyond 5,000,000 for anything else. Apart from sending and receiving. The minimum requirement is the same as the 2nd tier and that’s your BVN. There’s. Also, a last tier which isn’t referred to as the 4th tier but called the Merchant Level.

It allows this user to send and receive 1,000,000. However, there’s no limit to the amount of money that can move to their bank accounts. , The minimum requirements are as the tier 2 and 3. However, there will be more KYC that is linked to the Anti Money Laundering or AML, and Combating Financing of Terrorism or CFT. Advantages. So what are the advantages of this Let’s start with the fact that it’s going to be really fast with regards to payments. It’s? Also going to be very cheap.

Cheap for both the CBN and the users. For the CBN. They don’t have to deal with the logistics of moving paper, money up and down or printing paper money.

They could cut costs by a third if they minted a third of their allocation to digital currencies and for us the users it could be cheap or maybe even have no cost of transfers on some wallets. , Like the First Tier wallet up to the merchant wallet. Basically has no cost at all. , However, experts have pointed out that the CBN hasn’t clearly stated if there would be a charge between an existing bank account which already charges you money and an e-Naira wallet which doesn’t.

Does it mean if I send money from my normal Bank account to the e-Naira wallet I get charged, but when I send from e-Naira to a normal account, I won’t get charged. Nothing has been stated for now. . Another advantage is that Anti Money Laundering ( AML ), would be baked directly into this system and because of the robust KYC or Know Your Customer level of the BVN, we should be able to hit the ground running as fast as possible.

Not everyone will participate. Of course, I will for science purposes, but I’m sure it will not be out of the ordinary.

It will surely be transparent. I hope. Concerns With regards to the concerns experts, have. It’s. Control. , The Director of Monetary Policy in the CBN says that the CBN will have some control in the beginning. Remember when I said earlier in my first video about the Nigerian Digital currency that the CBN might compete with commercial banks or have a centralized power that gives them authority to do and undo with immediate effect.

They also mention this in the 3rd stage as well. As I explained earlier in this video. . It could also phase out big players that have billions of dollars in investment and payment Infrastructure, because now the CBN can even issue money directly. Why would they need them? However? It might also not be the case as these companies might help with distribution, but still, if it catches on there would definitely be a mass effect and it could disrupt many big companies or some banks at the worst case.

The other thing is Data. Protection. , The information of tens of millions of Nigerians will be in the hands of the government and shared by a single private firm.

However, the CBN has a stake And they definitely will have deciding power over the sharing of these details and with the obvious advancement of technology. I hope we can’t get identities compromised or worse stolen.

One of the many reasons mentioned was Financial Disintegration. . Financial Integration is simply the linkage or how close our economy is to the world’s economy or economies of neighboring or regional countries for us it’s how we measure up against our African countries…. According to one of the CBN directors, Nigeria is quite financially disintegrated. .

Financial Integration is measured by capital, inflows, stocks of assets and liabilities, interest rates and how financially open an economy is. .

We are unfortunately, not there yet and the implementation of the e-Naira, if not done right, can probably widen the inequality gap not just relatively and also slow down the rate of getting more citizens financially included.

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