CBN says e-Naira will strengthen the banking system

The Central Bank of Nigeria said that e-Naira will strengthen the banking system and facilitate compliance with existing laws such as anti-money laundering, protection of customers against fraud and security and stability of the banking system. payment.

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

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

“Central bank digital currency offers all the benefits of cash but in digital form. Every digital currency is an electronic version of cash, legal tender. When you make a payment in cash, the payment is made instantly; digital currencies carry the same promises and even more.

He added, “The CBDC offers a safer option compared to privately issued cryptocurrency, which was based on the possibility of enabling cheaper transactions, but is now used for investment.

“The intention is not to eliminate other forms of payment but to supplement the current areas of payment options, thus ensuring the stability of the payment system in the long term. I expect to see in the coming days 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 view that the CBDC era is fostering greater opportunities, and the central bank needs to 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 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, use that particular currency.

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

He added, “This is an opportunity for the fintech market to connect our people to existing opportunities in the financial market, connecting our people 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 finance the necessary infrastructure investments that this country needs today.”

Fintech Nigeria Chairman Ade Bajomo said, “Digital currency offers the opportunity 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 provides an opportunity to explore Nigeria’s fintech and digitalization and empower innovators and financial services companies to innovate.

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