Easy as ABC, these are ways eNaira can be useful

eNaira design architectural outlook
eNaira design architectural outlook

Many Folks are already wondering what eNaira is all about. First, let’s clear the air on this… It is the new level entry digital currency of the Nigerian government into the economy.

According to Federal Government of Nigeria and in conjunction with Central Bank of Nigeria (CBN), eNaira is now officially a new Nigerian currency just as the Naira note.

eNaira vs Naira: what’s the difference?

What differentiates this digitized currency from the hard currency is that your phone and computers are the only keys applicable to unlock its value whenever there is a need to use your money.

eNaira is a store of value in digital form, while the currency note is the store of value in physical form. Although, they can be both be easily inter-converted from eNaira to Naira and verse versa.

eNaira’s issuance is done and backed by blockchain technology while the hard note is generated and circulated based on the fiat value of gold and top-notch printing technology.

The eNaira is equally having the equivalent value of Naira.  It is a partly stable coin because its value is tied to a currency of naira notes in a way USDT is pinned to a currency (of the US dollar) and maintains a stable exchange value.

On the other hand, the Naira that has the same value as this digital Naira is is a stable coin because it is tied to a currency like the US Dollar, Euro, Yuan, e.t.c . As a government backed currency, eNaira is created on the blockchain technology which means you cannot have a duplicate or fake eNaira.  The government wouldn’t have the headache If combating fake naira notes

How to apply and use eNaira as a citizen

You can get it through financial institutions like banks who will be retailing the eNaira to you.

To apply and get eNaira to work for you as general users

1. Download the eNaira app.
2. Enter the verification code received from the bank.
3. Enter minimum identification details. The few things to have ready are NIN, BVN, or know your customer (KYC)/anti-money laundering (AML) information (depending on the customer tier),  passport photograph, and email.
4. Your minimum identity is verified and validated.
5. You receive approval notification from your financial institution.
6. You can login to your account

Procedures for applying and getting eNaira to work for you as Merchants/businesses.

No doubt that our digital transactions ecosystem is evolving day by day. This following steps will explore on how to use eNaira for business.

Take the following steps:

1. Download eNaira mobile app.

2. Enter verification code from the bank.

3. Enter minimum identification details. The things to have ready are NIN, BVN, or know your customer (KYC)/anti-money laundering (AML) information (depending on the customer tier),  passport photograph, email, Tax Identification Number (TIN). Registered CAC certified business name. It is important you understand the purpose of AML. This CBN’s AML is a mechanism put in place to help combat financing (CFT) regulations.

4. Financial Institutions verifies. and approves business account.
5. Your eNaira wallet created and activated.
6. Merchant and financial institutions receive approval notification.

The relevance of eNaira to businesses is inestimable due to the fact that eNaira is safe because it works on blockchain technology. The implication of building this monetary system on this framework is that it will promote trust when it helps to solve verification risk by assuring all holders that each eNaira is a valid token.

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How does eNaira compare to crypto?

It is very important to clarify this that eNaira is built on the same block chain tech architecture as the cryptocurency but it’s not a government approved legal tender as the eNaira is.

8 advantages of using eNaira as an alternative to cash.

This is just Like rephrasing the statement above as in what way can this be used to better Nigeria or anyone that decides to apply eNaira

  • The eNaira has a low-cost advantage when compared to FIAT. The daily transfers between accounts are at no cost to the holder of the account.
  • Lower transaction cost is a massive incentive as traders will pay no fees for withdrawals and deposits to and from their bank account. No transaction fees which helps reduce the overhead cost while improving safety.
  • CBN will integrate forex into this process, and this will make it convenient to receive remittances to Nigeria from abroad.  Any amount in foreign currency can be converted to eNaira instantly at a far lower transfer fee.

  • Helps to reduce inflation. The scarcity of coins in Nigeria has overreaching effect on inflation, this happens when most merchants round up their prices to match with available Naira notes in circulation. This rounding up brings about an artificial rise in prices. For example, if a bread sells for N90, a retailer can suddenly decide close the price to N100 with any increase in the production or service costs. This often happen when it sellers have to avoid dealing with “change” issues. However, with the eNaira, this will help reduce the possibility of “round-up” inflation.
  • The eNaira can be the ECOWAS currency. The eNaira can be used by any two parties who can credit a Nigerian banking institution with corresponding currency. This means traders banking with Jaiz Bank in Cotonou can settle their import bills from the Ghana using eNaira. This will be the next level of the rollout.
  • The financial institutions and FINTECH are supported to start building out an ecosystem with eNaira as the base product.
  • The eNaira will also bring in the vast majority of  Nigerians who have no bank account but have a phone into the new digital economy.
  • With the eNaira, salary payments and payments for goods and services can be concluded.The process of minting and burning eNaira tokens is done through CBN. Its introduction into the Nigerian economy is a plus , with lower costs, and higher productivity.

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