“1 Naira to 1 eNaira”: CBN Tells Nigerians Abroad to Send Money Home Using Its Digital Currency

• The Central Bank of Nigeria (CBN) has introduced the eNaira as a digital currency for diaspora remittances
• The eNaira payment option will run concurrently with the Dollar payout, giving recipients a choice to receive their remittances in digital currency or traditional currency
• Should eNaira be a choice, International Money Transfer Operators (IMTOs) are required to apply for a one-time "No-Objection" to pay out

The Central Bank of Nigeria (CBN) has asked Nigerians abroad to consider eNaira as a payment option for diaspora remittances.

The suggestion is in the bank's circular titled, "Operational Framework for eNaira Payment Option to Recipients of Diaspora Remittances," dated June 15, 2023.

In the circular, addressed to the International Money Transfer Operators (IMTOs) and the public and signed by CBN's director of Trade and Exchange Department, Ozoemena Nnaji, the apex bank noted that the move was in furtherance of efforts to liberalise the payout of diaspora remittances.

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According to the guidelines, IMTOs must request a one-time "No-Objection" approval from the central bank to make payouts in eNaira.

Consequently, commercial banks have been instructed to provide account details for receiving foreign currency from IMTOs

The CBN emphasises that receiving diaspora remittances in eNaira is optional, and the digital currency payout option will coexist with the dollar payout.

The CBN explains:

"The eNaira – like the physical Naira – is a legal tender in Nigeria and a liability of the CBN.

“The eNaira and Naira have the same value and will always be exchanged at 1 Naira to 1 eNaira."

Traders lose over N2trn as US govt sues Binance for web deception

Meanwhile, in another report, Binance, the world's largest cryptocurrency exchange, is facing a lawsuit by the US Securities and Exchange Commission (SEC) for alleged web deception.

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The SEC's lawsuit is the second legal challenge faced by Binance this year and comes as part of the US government's increased efforts to regulate the cryptocurrency industry.

Binance denies the allegations and vows to defend its platform vigorously, criticising the SEC's action as a lack of clarity and guidance from regulators.

Source: Legit.ng