Mr. Godwin Emefiele, Governor of CBN

CBN releases CBDC guidelines, launches e-Naira digital currency October 1

*The Central bank of Nigeria e-Naira is a legal tender for the entire country, and it will have non-interest-bearing Central Bank Digital Currency (CBDC) status, a transaction limit for consumers, and a value-based transaction limit

Gbenga Kayode | ConsumerConnect

As a legal tender billed for activation for the entire country October 1, 2021, the Central Bank of Nigeria (CBN) has disclosed that the e-Naira digital currency will have non-interest-bearing Central Bank Digital Currency (CBDC) status, a transaction limit for consumers, and a value-based transaction limit.

ConsumerConnect reports the Bankers’ Bank has set an initial transaction limit of N50,000 for non-account preparatory to the commencement of ‘Speed Wallet’ digital currency next month.

 

In a guideline the Bank issued to the Deposit Money Banks (DMBs) in the country, the CBN stipulated a transaction limit for consumers, non-interest-bearing CBDC status, and an account value limit.

According to the apex bank, there are three levels to the CBN “Speed Wallet” issued primarily to meet the October 1, 2021, deadline.

It also clarifies that as a means to transact value, the digital wallet does not compete with existing banks, but is awaiting the creation of wallets by banks and other innovators in Nigeria.

Tier one

With the first tier, Speed Wallet can be used by anyone who does not have a bank account.

However, the Bank noted the users will have to submit a passport photo, a name, birth date and place, a phone number, and their address.

A N50,000 limit is in place for “Send & Receive”, and the minimum requirement is the individual’s National Identity Number (NIN), which will be validated.

A cumulative balance of N300,000 is fixed each day.

Tier Two

An account with an existing bank is required for users of Tier Two wallets.

The user is limited to sending and receiving N200,000 per day with a Cumulative Balance of N500,000 daily.

A Bank Verification Number (BVN) is the minimum requirement for this level.

Tier Three

Tier three allows daily transactions of N1 million, with daily cumulative balances of N5 million. In order to qualify, you need to have at least a BVN.

Photo: ChangeNow.Io

Those who possess this merchant level can send or receive a million naira daily. A merchant can move as much money as they want into their bank accounts.

However in context, the Central Bank further disclosed, neither merchants nor consumers using the wallet will be charged a fee.

In the circular, the CBN stated the e-Naira is a legal tender for the entire country, and it  will have non-interest-bearing CBDC status, a transaction limit for customers, and a value-based transaction limit.

Nigerian banks also will be allowed to invite all their customers to register for the e-Naira, said the Bank.

It further said: “Besides pre-generated codes, the banks can send invitation codes for onboarding to a specific list of selected customers.

“Onboarding will be done for customers who have a code assigned by their banks. The banks have already validated and verified these customers.”

The speed wallet, CBN noted, provided by its institution, is merely a stop-gap measure for meeting the deadline, given that banks and other licensed operators in Nigeria may provide their own wallets since the Bankers’ Bank does not intend to compete against the banks.

The Bank added: “As a National Critical Infrastructure, the e-Naira system will be subject to comprehensive security checks, all data and personally identifiable information (PII) will be kept off the ledger and will not be stored on the ledger.”

Thus, in order to catalyse the adoption of e-Naira in Nigeria, banks are expected to facilitate onboarding and provide world-class customer service.

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