CBN opens up on releasing 2nd version of enaira, lists important features

• More eNaira will be accepted as payment for goods and services into government accounts, according to the CBN
• The development will also enable MDAs to begin paying vendors and beneficiaries using the enaira wallet
• This move is a step toward the CBN's goal of increasing the eNaira's acceptability in both the public and private sectors

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria (CBN) has stated that more eNaira would be accepted as payment for goods and services into government accounts.

The CBN would not give up on enabling payers to deposit funds into government accounts at the CBN through their eNaira wallets or other ways. Photo Credit: CBN, Parrallex
Source: UGC

This was mentioned in a recent press release from the CBN titled Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024–2025.

According to the statement, DailyTrust reported that the CBN would keep working to make it possible for payers to utilize their eNaira wallets or channels to deposit money into government accounts at the CBN.

It will also permit Ministries, Departments, and Agencies (MDAs) to initiate payments to vendors or beneficiaries using their own eNaira wallets.

CBN introducing eNaira version 2.0

The CBN is working to increase eNaira's acceptance in the public and private sectors, and this development is a part of that endeavour.

The CBN's suggestions outline several improvements for the eNaira in addition to making payments easier. These include working together with the federal and state governments to promote the adoption and introduction of eNaira version 2.0, which emphasises increasing the contribution of deposit money banks to its use.

The document noted that

“The CBN issues and regulates the eNaira, a digital form of the fiat currency. The eNaira offers several benefits which include faster and cheaper payments, increased financial inclusion, and reduced fraud, amongst others.“The CBN shall sustain efforts in enhancing the eNaira and driving its adoption. This includes the deployment of eNaira version 2.0 with focus on wholesale Central Bank Digital Currency (CBDC) to increase the participation of deposit money banks and empower them to drive its adoption; implementation of offline functionality, programmable money; and more collaboration with federal and state governments to increase its adoption.”

CBN partners firm to increase eNaira usage

Legit.ng reported that the Central Bank of Nigeria has signed a Memorandum of Understanding with Gluwa, a blockchain company, to drive the adoption of the eNaira.

Stakeholders had asked the CBN in October last year to seek collaboration with financial technology companies to help in the adoption of Nigeria’s digital currency.

The partnership between CBN and Gluwa comes just days after the world’s largest cryptocurrency exchange platform, Binance, announced that it was halting operations in Nigeria, following a clampdown on crypto platforms.

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Source: Legit.ng