According to a report, the Central Bank of Nigeria (CBN) is preparing to have its suggested digital currency designated “crucial national facilities” in order to secure it from functional and cyber-security dangers. In addition, the CBN will also use regulative and compliance systems to avoid what it calls “disruptive competitors for electronic cash.”
Cost Versus Benefit
As a Thisdaylive report describes, the digital currency which will be referred to as the e-naira will at first co-exist with standard payment systems. CBN hopes that this technique will assist it “address interoperability dangers that may be related to the application.”
With regard to the expenses and dangers included, Thisdaylive, whose report is seemingly based upon a dripped CBN file, states the reserve bank is confident that the increased performance in operations will balance out the preliminary expenses of releasing the digital currency. On the other hand, the CBN reckons the threat of monetary disintermediation will be attended to through the imposition of limitations on e-naira holdings.
Public-Private Partnership Arrangement
The report also describes how the releasing of the e-naira will lead to the development of a public-private collaboration plan in between the reserve bank and regulated organizations. As part of this plan, the CBN will be charged with the style and circulation of the digital currency to regulated organizations. These organizations, in turn, “offer the digital money to people and companies.”
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This most current report by Thisdaylive appears to strengthen earlier reports that the CBN is preparing to launch a trial run of the e-naira on October 1, 2021. The report also appears to be the very first time that finer information about the operations of the proposed digital currency have actually been revealed.
With simply a couple of weeks left prior to launch, it now stays to be seen if the digital currency, which CBN authorities firmly insist will lead to less expensive and more effective deals, is going to come to life as guaranteed by reserve bank guv Godwin Emefiele.
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