Central Bank of Nigeria unveiled CBDC guidelines and announces plan to launch e-naira wallet
The Central Bank of Nigeria (CBN) confirmed that its e-naira digital currency will be a legal tender and interest-free asset status. In addition, a limit will be imposed on customer transactions and value-based transactions. This was reported by Nairametrics and Bitcoin
According to the Nairametrics report, the new revelations about e-naira
‘s design and operational module are contained in a document the CBN recently sent to banks. The same document also shares details on the roles assigned to each of the parties involved in the e-naira programme. It would be recalled that the naira is the official Nigerian currency.
As explained in the report, the CBN itself will be responsible for the first part of the e-naira rollout. This will involve the issuance, distribution and destruction of the currency. In the second stage, which is called the Financial Institutions Suite, “licensed financial institutions will be able to order currency or issue stable coins.” They willalso “manage digital currency at branches, Know Your Customer (KYC), identification and Anti-Money Laundering compliance capability.”
The Nigerian government will be involved in the third stage where they will “process digital payments sent and received from citizens and businesses”. The fourth stage involves merchants who are expected to provide “low-cost payment and merchant management software, POS, remote payment solutions, online capabilities, transaction analysis and reconciliation”.
The last stage, which is also known as Retail Consumer Suite, will focus on digital currency architecture.
E-naira and “Speed Wallet”
Meanwhile, a report from CryptoTVplus says the CBN is now on track to launch a wallet for its digital currency. According to the report, this wallet allows the CBN to meet its goal of launching e-naira before October 1, 2021. However, this wallet will not compete with existing banks. Instead, the media report says it will “serve as a means of conducting value transactions, pending when banks and other innovators can provide their own wallets.”
The wallet, which is known as SpeedWallet, will have three tiers. The first tier is designated for Nigerians without bank accounts. However, it will only be accessed on presentation of “a passport photograph, name, place and date of birth, anda passport number.
The information is “gender, gender, address and phone number”.
Level two wallet users, on the other hand, must “have an existing bank account.” Users at this level “can only send and receive USD $400 [N200,000] daily with a daily cumulative balance of USD $1,000. [N 500.000.]”. The minimum requirement for this level is a Bank Verification Number (BVN). The third level allows for daily transactions in the amount of USD$2,000 with a daily cumulative balance of USD$10,000. Having a BVN is the minimum requirement.
Last month, DiarioBitcoin published reports that starting October 1, Nigeria would launch a test pilot for its own centrally backed digital currency (CBDC). At the time, the head of IT, Rakiya, Mohammed, indicated in a statement that it would be pilot testing for GIANT, the project for the development of a CBDC dating back to last 2017, which will run on the network Blockchain of Hyperledger Fabric.
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