THE Central Bank of Nigeria (CBN) has reportedly announced plans to launch its e-naira digital currency as a legal tender.
CBN also said there will be a non-interest-bearing asset status, a limit on customer transactions while value-based transactions will be imposed.
The new revelations concerning the e-naira’s design as well as the operational module are contained in a document that was recently sent to banks by the CBN. The same document also shares details about the duties assigned to each of the parties participating in the e-naira programme.
As explained in the report, the CBN will be responsible for the first part of the e-naira rollout. This will involve the issuing, distribution, redemption, as well destruction of the currency. In the second stage, which is called the Financial Institution Suite, “licensed financial institutions will be able to request currency or issue stablecoins.” They will also “manage digital currency across branches, KYC, identify and AML compliance capability.”
The Nigerian government will be involved at the third stage where it will “process digital payments sent to and received from citizens and businesses.” At the fourth stage are merchants who are expected to provide “low-cost payment and business management software, POS, remote payment solutions, online capabilities, transaction analysis and reconciliation.” The last stage, which is also known as the Retail Consumer Suite, will focus on the digital currency’s architecture.