What is the E-Naira?

INTRODUCTION

What is the e-Naria?

The e-Naira will be a digit representative of a paper Naria currency issued by the Central Bank of Nigeria. The e-Naria will be a “complementary” legal tender in Nigeria, having the same exchange value as the Naira, and maintain a “parity of value” with the Naira.

 The e- Naira will not earn any interest to holders. The e-Naira is built on a blockchain open ledger technology. Creating the eNaira on the blockchain means you cannot have a duplicate or fake e-Naira. Each e-Naria note will be unique.

I recall that the Central Bank of Nigeria recently postponed the planned flagging off of the country’s digital currency e-Naria.

Owing to the regulatory guidelines on the eNaria released by the CBN, financial institutions will be required to maintain a treasury eNaria wallet for holding and managing eNaria on the Digital Currency Management System (DCMS).

Furthermore the Central Bank of Nigeria has planned a rollout in a tiered manner; it will issue the e-Naira, to financial institutions like banks. The bank will retail the e-Naria to the customers/individuals,depending on your transactionvalue, if your transaction value is less than N50,000 a day, you don’t need a bank account to get the e-Naria;you can use a National Identification Number verified phone number to buy e-Naria. If you want to withdraw more than N50,000 but up to the daily limit of N1million, the you will need a Biometric verification Number in addition to a NIN verified phone number. The CBN has very strict “Know Your Customers” protocols for this process, the aim being to assure all retailers of the safety and utility of the e-Naria.

Remarkably Nigeria is the first country in Africa to launch a digital currency, I will commend her for this wonderful development. This will facilitate trade(AFCFTA) African Continental Free Trade Area in line with global trend and also propel other Africa Countries to adopt the usage of digital currency.

The website promises easier financial transactions for users of eNaria, offers opportunity for peer-to -peer payments which allows users to send  money to one another through a linked bank accountor card;allows customers to move money from their bank account to their eNaria wallet with ease; can monitor their eNaria wallet, check balances and view transactions history; and make in- store payment using their wallet by scanning QR codes.

 

There are prospect and opportunity for lawyers and law firms in the emergence of eNaria, Having said this, lets proceed; permit me to borrow the exact words of Ali Afegbua in describing the current Nigeria Legal Practice situation, “Innovate or die” the power of innovation in this modern era cannot be overlaboured.it is high timelegal practitioners arise and make indelible impacts, Technology and other modern approaches are gradually creeping in and taking over the traditional jobs of legal practitioners and it is only the vigilant, innovative, industrious and Hardworking lawyers that will stand the test of time.

 

I perceive that in years to come digital currencies will be a global legal tender, this is an improvement in our banking industry where no charges,eg, VAT, (value added tax) will not arise at any point where transaction is carried out, it will also open the international doors for lawyers who deals with international cases to have their money intact without any form reduction.

The foreseen risk,is very low. Owing to the fact that the e- Naria is online, the BVN and NIN information is also online, the risk of malicious actors attempting to hack or gain access to the data is very low. The process of minting and burning eNaria tokens by the CBN to be top-notch.

 

Moreover, it opens a new area of law, for lawyers and law firm to get themselves abreast with the topic and the necessary information which will go a long way in building a smart, intelligent, reputable law firm and improve the legal practice.

 

I am of the view, that this digital currency will help lawyer,law firm and the legal industry as a whole if well appreciated and welcomed by the lawyers.