The CBN's new digital money application, the eNaira, is now ready for download following President Muhammadu Buhari's introduction of the currency.
CBN said that after the introduction of the Nigerian official eNaira that the applications had already attracted more than 5,000 downloads.
That's because, as of Oct. 25, the Nigerian central bank announced regulatory rules stipulating that fees for transactions initiated using the eNaira platform will be waived for the first 90 days.
The Guide to Costs by Banks, Other Financial, and Non-bank Financial Institutions will describe relevant charges once this period ends.
More than 5000 people had downloaded the eNaira speed wallet app for individuals at 4 p.m., while only 1,000 people had downloaded the eNaira speed merchant wallet.
Regulation and issuance rules state that the Central Bank of Nigeria (CBN) would automatically onboard banks. At the same time, merchants will be onboarded once they download the app, and people will be required to onboard on their own.
The guidelines showed that various stakeholders would have different wallets.
The guideline specified that the eNaira stock wallet belonged entirely to the Central Bank of Nigeria (CBN) and would store all newly created eNaira.
That financial institutions were supposed to keep one Nigerian currency treasury wallet to store Nigerian currency received from the Central Bank of Nigeria's Nigerian currency stock wallet was stated in the statement.
Branch sub-treasury wallets for financial institutions (FI) can be created in eNaira and funded through the FI's single eNaira Treasury wallet with the CBN. FI can build branch sub-treasury wallets in eNaira.
"The treasury eNaira wallet will finance the eNaira branch sub wallet.
Payments in eNaira must be received and made using eNaira Merchant speed wallets only. End users will be able to transact using eNaira fast wallets on the eNaira platform."
The enaira is intended to include two-factor authentication and other security measures to keep your money safe.
Tier 0, which is only a phone number without a validated National Identity Number, has daily transaction limitations of N20,00 and a balance cap of N120,000 meanwhile.
There is a transaction limit of N50,000 and a balance limit of N300,000 for Tier1 accounts with confirmed numbers.
Compared to merchants with no transaction limit, Tier2 and Tier3 categories have N200,000 and N1 million dollar daily transaction caps and N500,000 and N5 million dollar account balance caps.
Chibuzo Efobi, CBN's Director of Financial Policy and Regulation Department, issued a circular declaring that the eNaira will serve as a cheaper, more efficient payment mechanism and value storage that is also universally recognized and trusted.
"It will also enhance the efficiency of monetary policy, increase the government's capacity to implement targeted social initiatives, and provide a less expensive alternative channel for collecting government income.
It's stated that "the rules attempt to give simplicity in the eNaira's functioning, stimulate acceptance and usage by the general public, promote low transaction costs, push financial inclusion while minimizing inherent risks of disintermediation or any adverse impact on the financial system."
Nigeria is the first country in Africa to use digital money as its official currency
To minimize transaction costs and increase participation in the formal financial system, the Central Bank of Nigeria has joined a growing list of emerging nations betting on digital money.
According to President Muhammadu Buhari, Nigeria has become the first African government and the first country to provide its citizens with digital money. "Nigeria's GDP might rise by $29 billion over the next decade by adopting the central bank's digital currency, and the underlying technology is known as a blockchain."
According to the IMF, Africa's largest economy would have a GDP of $480 billion by 2021.
Since outlawing banks and financial organizations from trading or working in cryptocurrencies earlier in February because they were a danger to the financial system, Nigeria has issued its version of the digital currency dubbed the eNaira.
Governor Godwin Emefiele of the Central Bank of Nigeria announced that since the debut of the eNaira platform, it had had over 2.5 million daily visitors, with 33 institutions connected on the platform, 500 million c ($1.2 million) successfully minted, and over 2,000 clients aboard.
In contrast to their crypto equivalents like Bitcoin and Ethereum, which are highly regarded because they are not tethered to fiat money, central bank digital currencies, or CBDCs, are national currencies, such as the US dollar. Naira's tangible currency has depreciated by 5.6% despite attempts by the central bank to stabilize the currency.
When it comes to eNaira exchange, Emefiele promises that it would always be one naira for every one eNaira.
According to the central bank, the digital currency will strengthen monetary policy while boosting cross-border commerce and financial inclusion.
He said that CBDCs could help spur economic growth by increasing economic activity, remittances, and financial inclusion while improving monetary policy effectiveness. To assist more individuals and enterprises from the informal to formal sectors, he suggested using digital money.
By selecting Bitt Inc. as a technical partner in August, the Nigerian Central Bank was assisting the creation of a new currency that was previously scheduled to be introduced by October 1.
National digital currencies will soon be available in Nigeria, the Bahamas, and Eastern Caribbean Central Bank. Earlier this year, China began using a "digital renminbi" trial program. To make money transactions quicker and cheaper, African countries from Ghana to South Africa are experimenting with digital versions of their legal cash.