The eNaira may help Nigeria repair its badly damaged remittance system.
The Central Bank of Nigeria announced that the eNaira went live on October 25, making the country of nearly 220 million home to what is far and away the largest CBDC.
Users will be able to “send and receive money faster, easily, and at very minimal costs,” the CBN said. The same applies to financial institutions, which will be able to make inter and intra-bank transactions faster and cheaper.
But the key benefit is likely to be enabling faster and easier cross-border money transfers, notably remittances. Foreign exchange problems are causing serious disruptions to remittance income, Nigeria’s second-largest source of foriegn currency after oil. Notably, the central bank promised that the eNaira will offer “a hitch-free foreign exchange.”