The Central Bank of Nigeria announced the introduction of digital currency in the country which is called the E-Naira to be paired to the country Naira note.
E-Naira is the digital representation of the country’s Naira note through which Individuals and financial institutions can track transaction easily. This announcement sparked up debate about the difference between the E-Naira and other digital currencies like bitcoin, Etherum etc.
Let it be known that the E-Naira is an electronic form of the country’s paper note issued by government, while cryptocurrency is built on the blockchain and do not need the Central Bank and the government.
E-Naira would be the Central Bank Digital Currency (CBDC) which means that while it is regulated by the CBN, it is a token that would only exist in digital and electronic form.
All cryptocurrencies are digital currencies but to not all digital currencies are cryptocurrencies such as the E-Naira.
The e-Naira would be regulated by the Central Bank of Nigeria, but cryptocurrencies are not created to be controlled by any government.
The Central Bank of Nigeria announced the postponement of the launch of the CBDC, in a statement According to the CBN spokesperson, Mr. Osita Nwanisobi, “the decision to postpone the unveiling of the e-naira, scheduled for October the 1st, was made to avoid any distractions from the country’s 61st Independence Day celebration”.
Nevertheless, the CBN has assured Nigerians that the bank and other partners are working to ensure a seamless process for the benefit of all.
Meanwhile, no new date has been announced for the launch.
The postponement also comes in the wake of a suit filed by E-Naira Payment Solutions Limited against CBN, concerning the use of the name “eNaira.”
The firm, through its lawyers, accused the CBN of trademark infringement. This was according to a document issued by Olakunle Agbebi & Co, solicitors to E-naira Payment Solutions Limited, notifying the CBN to desist from using the proposed name.
Assuring that there is no cause for concern, he stated that the CBN and other partners are dedicated to ensuring a smooth process that benefits customers in general, particularly those in rural regions and the unbanked.