The CBN has presented the eNaira initiative to Nigerian banks, including the project's architecture and operating module. They explained how the new currency would be constructed and operated.
The e-Naira is, in reality, legal money for the entire country, according to the study. It will also feature a non-interest-bearing CBDC status, a transaction limit for consumers, and a value-based transaction limit.
The e-Naira program has been categorized into different stages
The Central Bank will charge the first product component, which comprises the issue, distribution, redemption, and destruction of money. Currency transactions are tracked and analyzed, and data is saved on a cloud server.
Licensed financial institutions will be able to request money or issue stable currencies and handle digital currency across branches and comply with KYC, identification, and anti-money laundering regulations.
The government will process digital payments given to and received from people and companies more quickly thanks to the eGovernment Suite.
Merchants will supply low-cost payment and business management software, POS, remote payment solutions, internet capabilities, transaction analysis, and reconciliation.
User-centered designs for a better user experience are included in the Retail Consumer Suite. The architecture will be extensible to allow for innovation, and it will have sophisticated privacy and security measures.
As a result, the Nigerian Central Bank defined the planned transaction fee for the e-Naira wallet.
User-to-merchant and peer-to-peer wallet transactions are accessible on the digital currency infrastructure.
Nigerian banks would be responsible for promoting and marketing the centrally issued digital currency as a cash alternative to existing and future clients to help the Nigerian central bank achieve its objective of financial inclusion.
To assist in speed the adoption of the e-naira, banks will make onboarding easier and deliver world-class customer service.
Banks in Nigeria would be able to ask all of their clients to sign up for the e-Naira. In addition to pre-generated codes, banks can issue onboarding invitation codes to a specified group of clients. Customers whose banks have given a code will be onboarded. These clients have already been vetted and certified by the banks.
The Central Bank also noted that the wallet it offered was only a temporary solution to meet the deadline because banks and other licensed operators can supply their wallets. The Central Bank did not want to compete with banks.
NIBSS and other switching platforms, according to Nigeria's central bank, would be essential components of the digital currency initiative. In the e-Naira implementation, existing infrastructure may be integrated and used.
The e-naira system will be subjected to extensive security evaluations as a National Critical Infrastructure. All data, including personally identifying information, will be removed from the ledger (PII).