Some of us had great hope in it being a way out of fx flip flop.
Infact I personally foresaw it being continental coin but not sure if they launched a coin or a cashless platform.
My few friend from Gambia, Ghana, Zimbabwe and Cameron, Jealousy over took them hearing of the rumoured e-currency from the continent's most populous nation.
However the first pitfall is the adoption of the e-naira
our currency is naira and kobo.
The Kobo seems to have been forgotten and the Naira has not played top on the global currency index across all FX market.
So I ask what is the rationale behind continuation of the name naira when Kobo could return the lost values?
It has not only created confusion in identity but denied it the potential of being a viable product in the E-currency market place.
Imagine that the nation choose to launch a Kobocoin and 10,000 unit of kobocoin being 1 naira?
The entire prospect of e-naira would have been greatly optimized.
First:
There will be distinct clarity on how to acquire it as clear cut product.
But now they have thrown confusion on themself on funding e-naira wallet.
Secondly
Being a continental hub, if the name Kobocoin was adopted and mined like every other coin, it will imply that 0.0000450 Kobocoin could be equal to 1 BUSD and possibly 0.005USD.
This will enable every African nation want to trade on the currency.
Limiting volume could have created a rush and demand that will increase the value knowing that it will provide alternative to get USD.
But rather than liberalize the process they have offered extended cashless policy framework with little touch of Blockchain Technology claims
Thirdly
Every country who had e-currency, mined it. Some went as far as giving free units to her members, this increased interest for people to want to deal with it.
In our own case what have we done?
you can only fund from your naira account excluding nationals like Kenyans from the possibility of trading on the e-naira which could have been best suited on Kobocoin as a continental Giant.
For the fact that google dropped the e-naira app is enough feedback to CBN.
since they didn't do consultative checks prior to release.
Is even more disheartening that all media handles associated to the adopted name was not blocked for exclusive official use prior to release.
If just a day after launch people are already using a fake handle to redirect users, it implies basic due diligence were missing.
Fourthly.
Personally speaking, I greatly doubt if the e-naira launched is in close rank to existing ones in the E-currency echosystem.
Before the worse happens, it will be in the best interest of citizens for the Government to suspend the project and sort inputs because the leg being put forward can not cross borders.
Whoever told them they can control e-naira , the way Naira (fiat) is controlled lied to them.
In Blockchain technology once keyed in, it's keyed in, not load through your bank account into your wallet and from your wallet into your account.
The P2P algorithm of e-currency is what gives it wider acceptance and should be the liberal point to fixing fx issues.
If 1trilion Kobocoin or e-naira as they have chosen is released!, activities around it will increase global demand for it, and hence raise demand for the naira, Therefore Mr president can make claim of it's potency to impact on GDP could hold waters.
To have a squared product in a circular clime, will have some people left out.
The hope of using the e-naira for the AfCFTA market is further dashed, since you will have to have naira to use e-naira.
Sincerely I was hopeful on this project, but with what has been put forward, putting in a Kobo, is as good as kissing it goodbye because the government still want to hold it fist 👊 tight in control.
Copied from Engr. Chinedu Ezeh IN MY PERSONAL PUBLIC OPINION
From Obi
ReplyDeleteI did not read all the conversation about the eNaira but I saw a few of them, I think everyone asking about the need for the eNaira, or the value it brings to the country should first understand how blockchain and cryptocurrencies work. eNaira is just a crypto, even though it is not called that, it is Central Bank Digital Currency issued on the blockchain. The only difference between the Bantu Blockchain https://bantufoundation.org/ which I am part of and the CBN eNaira is that eNaira is issued on what is called a permissioned blockchain controlled by the CBN, while Bantu blockchain is a permissionless blockchain capable of doing so much more.
It is a very good move by the CBN to become the first African country to embrace the CBDC.
There is enormous benefit for the country that will come from the eNaira, it will drastically reduce corruption and increase revenue over time.
The cost of printing Naira will be reduced gradually and completely eliminated when the eNaira is adopted and used 100%.
The Banks are still kept to carry out on-ramp and off-ramp on to and out of the blockchain, because people will still be using cash, but I am just thinking of what the need for commercial banks will be when the adoption of eNaira is 100%…
Cost of transaction will be drastically reduce when people are transacting directly with the eNaira and all transactions can easily be monitored.
There is a whole lot of benefit that will be derived from the CBDC.
eNaira wallet may have been taken down from Playstore, but you can get the BantuPay wallet today https://bantupay.org/, get yourself some XBN and start transacting on the blockchain, because you will still be required to do it in the very near future.
From Collins
ReplyDeleteYou summarized two things I said earlier.
The difference with others is that eNaria is running on a distributed ledger (Blockchain) and it's a P2P based transaction.
Whether it will stop corruption, we will find out . Cos cashless has failed to do and eNaira is cashless.
Whether it will reduce cash printing further, I'm not too sure. Except they quickly run the USSD version (which the networks and banks already do. So what the gap to close?).
Reducing cost of transaction? Yes. It's P2P. No need to switch costs. How much of that are people ready to worry about as against 2gat they consider "govt's plan to monitor their funds". Therefore inclusivity due to lack of knowledge becomes the issue that will threaten it.
No need sugar coating these issues. Better to know and deal with it.
ENaira is awesome. It can be improved upon with great feedbacks