Central Bank of Nigeria launches first CBDC in Africa

The Central Bank of Nigeria issued the eNaira, a central bank digital currency (CBDC). CBN said it is a direct liability of the central bank, a legal tender and will form part of the currency-in-circulation at par with the physical Naira at a 1:1 ratio.

The eNaira will complement the traditional Naira as a less costly, more efficient, generally acceptable safe and trusted means of payment. In addition it will improve monetary policy effectiveness, enhance the government’s capacity to deploy targeted social interventions and boost remittances through formal channels.

The eNaira wallet is required to access, use and hold eNaira, and it will be exchangeable for other CBDCs. It will be administered by the central bank through the Digital Currency Management System to mint and issue. Financial institutions will maintain a treasury eNaira wallet for holding and managing eNaira on the DCMS.

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