e-Naira will strengthen the banking system – CBN

Governor of the CBN, Godwin Emefiele

e-Naira will strengthen the banking system – CBN

The Central Bank of Nigeria has said that e-Naira will strengthen the banking system and make it easier to comply with existing laws such as combating money laundering, protecting customers from fraud, and ensuring safety and security. stability of the payment system.

The Deputy Governor of Central Bank of Nigeria Operations Mr. Folashodun Shonubi said this during the Chartered Institute of Bankers of Nigeria Advocacy Series webinar held on Thursday.

Shonubi said, “The Central Bank, in its implementation, ensured that the e-Naira fuels our economy and provides greater value.

“The central bank’s digital currency offers all the benefits of cash, but in digital form. Every digital currency is an electronic version of money, legal tender. When you make a payment in cash, the payment is done instantly; digital currencies imply the same promises and more.

He added, “The CBDC offers a more secure option over privately issued cryptocurrency, based on the ability to allow cheaper transactions, but which has now been used for investment.

“The intention is not to eliminate other forms of payment, but to complement existing areas of payment options, thus ensuring the stability of the payment system in the long term. I think in the next few days we will see rapid inclusion rates.

“For banks in developing countries, this will improve their liquidity, the efficiency of domestic remittances and challenge the high cost of remittances as the world rebounds from the pandemic.

“I am of the opinion that the era of the CBDC fosters greater opportunities, and the central bank must be aware of the risks and mitigate them.”

For his part, the Managing Director of the Securities and Exchange Commission, Mr. Lamido Yuguda said: “The pilot project on the E-Naira is about to be launched in October. People would like to position their digital currencies in such a way that many other users, beyond their borders, will use that particular currency. “

Yuguda said digital currency will help improve the capital market when combined with dynamic inter-developmental policies, which will lead to financial inclusion, especially in the capital market.

He added, “This is an opportunity for the FinTech market to connect our employees to existing opportunities in the financial market, connecting our employees to investment opportunities in other climates. Once we do that, we will develop our market, Nigeria has 200 million people. We are fortunate to have a young and hard-working population.

“This capital market would in turn fund the necessary infrastructure investments that this country needs today.”

Fintech Nigeria President Ade Bajomo said: “Digital currency offers opportunities to reduce poverty and increase financial inclusion. There are opportunities in terms of resilience, accelerating cross-border payments and promoting financial inclusion. “

Bajomo added that it provided an opportunity to explore Nigeria’s fintech and digitization and empower innovators and financial services companies to innovate.

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