President Buhari Officially Launches e-Naira

President Muhammadu Buhari has officially launched e–Naira, the Nigerian digital currency in Abuja, ABN TV reports.

Present were the Vice-President, Prof. Yemi Osinbajo and the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

ABN TV reports that the eNaira will be an electronic version of the local paper naira currency, equal in value and issued by the CBN. Nigerian authorities say the currency is not intended to replace cash but will function as a safe and efficient alternative means of payment.

The eNaira will be a Central Bank Digital Currency (CBDC), issued by the government, and it will have the same value as the paper, or fiat, currency.

CBDCs differ from cryptocurrencies in being regulated and therefore subject to banking laws. They are issued by a central authority and are therefore trusted by traders. The CBN issued its regulatory guidelines for the eNaira on 1 October.

As the eNaira has the same value as the physical naira, its value will rise or fall in relation to the dollar in the same way as the fiat currency.