Nigerian Central Bank Reveals CBDC Guidelines, Announces Plan To Launch E-Naira Wallet – Fintech Bitcoin News

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The Central Bank of Nigeria (CBN) has reportedly confirmed that its e-naira digital currency will be legal tender and non-interest-bearing asset status. In addition, a limit on customer transactions and value-based transactions will be imposed.

Launch in five steps

According to a Nairametrics report, the new revelations concerning the design of the e-naira as well as the operational module are contained in a document which was recently sent to the banks by the CBN. The same document also shares details on the tasks assigned to each of the parties participating in the e-naira program.

As explained in the report, the CBN itself will be responsible for the first part of the deployment of the e-naira. This will involve the issuance, distribution, redemption, as well as destruction of the currency. In the second step, called the Financial Institution Suite, “authorized financial institutions will be able to request foreign currency or issue stable coins”. They also “manage digital currency between branches, KYC, identification and AML compliance capability.”

The Nigerian government will step in at the third stage where it will “process digital payments sent and received from citizens and businesses”. In the fourth step, merchants should provide “low cost payment and business management software, point of sale, remote payment solutions, online capabilities, transaction analysis and reconciliation”. The final step, also known as the Retail Consumer Suite, will focus on the architecture of digital currency.

“Speed ​​portfolio”

Meanwhile, a separate report says CBN is now on the verge of launching a wallet for its digital currency. According to the report, this wallet allows the CBN to meet its goal of launching e-naira by October 1, 2021. However, this wallet will not compete with existing banks. Instead, the Cryptotvplus report says it “will serve as a medium of value transaction, until banks and other innovators can provide their own wallets.”

The wallet, also known as the Speed ​​Wallet, will have three tiers. The first level is for Nigerians without a bank account. However, access will only be obtained upon presentation of an “identity photo, name, place and date of birth, sex, address and telephone number”.

Level two wallet users, on the other hand, must “have an account with an existing bank”. Users at this level “can only send and receive $ 400 [N200,000] daily with a daily cumulative balance of $ 1,000. [N500,000.]”The minimum requirement for this level is a Bank Verification Number (BVN). The third level allows for daily transactions of up to $ 2,000 with a daily cumulative balance of $ 10,000. Having a BVN is the minimum requirement.

How do you assess the chances of success of the e-naira? Let us know what you think in the comments section below.

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