Central Bank of Nigeria to issue CBDC end of year

According to a Nairametrics report, The Central Bank of Nigeria has released new information on its CBDC e-naira design and well as how it will operate. The document also shares details about the duties assigned to each of the parties participating in the e-naira program.

As per the report, the Central Bank of Nigeria will be responsible for the first part of the e-naira rollout which willinvolve the issuing, distribution, redemption, as well destruction of the currency. In the second stage,the Financial Institution Suite, “licensed financial institutions will be able to request currency or issue stablecoins.” They will also “manage digital currency across branches, KYC, identify and AML compliance capability.”

In the third stage, The Nigerian government will “process digital payments sent to and received from citizens and businesses.”

In the fourth stage merchants will provide “low-cost payment and business management software, POS, remote payment solutions, online capabilities, transaction analysis and reconciliation.” The last stage, which is also known as the Retail Consumer Suite, will focus on the digital currency’s architecture.

Meanwhile, a separate report says the CBN is now on course to launch a wallet for its digital currency. According to the report, this wallet enables the CBN to meet its goal of launching the e-naira by October 1, 2021. However, this wallet will not compete with existing banks. Instead, the Cryptotvplus report says it will “serve as a means to transact value, pending when banks and other innovators can provide their own wallets.”

The wallet, which is also known as the Speed Wallet, will have three tiers. The first tier is designated for Nigerians without bank accounts. However, access will only be gained upon the submission of “a passport photograph, name, place & date of birth, gender, address and phone number.”