CBN Has Confirmed That Nigerians Can Use The ENaira Even If They Do Not Have Access To The Internet Through Their Mobile Phones
CBN has confirmed that Nigerians can use the eNaira even if they do not have access to the internet through their mobile phones
It is expected that Nigerians who do not have internet-connected phones will be able to make use of the eNaira currency as well. According to the Central Bank of Nigeria, CBN, the decision was made public through the release of a document entitled "Design paper for the eNaira."
It was stated in this document by the Central Bank of Nigeria that the eNaira solution will be available to all Nigerians, no matter what device they use. Therefore, there is no requirement for accessing the digital currency through a data network to be established.
This assurance comes in the wake of widespread public concern about the proposed use of digital currency in Nigeria, which has been expressed by a large number of Nigerians.
The central bank, on the other hand, stated that internet-enabled devices would continue to be used to optimize the value and use of the eNaira currency in the future.
In addition, the central bank claims that the eNaira will complement existing payment methods such as mobile banking applications, point-of-sale (PoS) terminals, USSD, fast code response, and internet banking by providing a more secure alternative to the local currency.
Apex bank announced its intention to introduce a digital currency to replace the widely accepted Naira notes in May of this year. Nigerians, on the other hand, continue to anticipate this policy.
Remember that the central bank had originally proposed launching the currency on October 1 to commemorate the country's independence, but that the launch has since been postponed indefinitely due to a lack of funding.
The apex bank believes that including USSD support for the digital currency will ensure universal access while also ensuring the integrity of the Nigerian financial system, according to the bank.
The Central Bank Digital Currency as a Model (CBDC)
The Central Bank of Nigeria (CBN) has decided to implement the eNaira in accordance with the Central Bank Digital Currency (CBDC) Model. The company stated that it selected this system because of the increased financial inclusion and access to banking services that it provides.
In its essence, the account-based CBDC model is consistent with the National Financial Inclusion Strategy, which promotes financial inclusion by leveraging last-mile networks to identify users and provide banking services through channels such as point of sale (POS) and universal short code (USSD), according to the Central Bank of Nigeria's explanation.
Moreover, the central bank stated that the CBDC model ensured seamless integration with the country's identity infrastructures, which include the Bank Verification Number, or BVN, the National Identity Number, or the NIN, and the Tax Identification Number, or TIN.
Account-based strategies, such as those employed by the Central Bank of Nigeria, are intended to facilitate access by leveraging Nigeria's existing identity infrastructure, which includes the BVN, NIN, TIN, and other identifiers, in order to uniquely identify individuals and corporate entities.
As a result of the ability to identify individuals, identity frameworks such as the National Identification Number (NIN) will enable those who are financially excluded to gain access to financial services." These identity systems will contribute to the development of a robust Know Your Customer (KYC) framework that will allow all Nigerians to gain access to financial services.
