Nigeria’s central bank issues draft guidelines for CBDC rollout

The Central Bank of Nigeria has issued a draft of guiding principles for the planned national digital currency (CBDC). Cointelegraph reports.

According to the document, the regulator will issue, distribute and redeem the digital naira. The CBDC will not replace fiat currency and will not bear interest.

The Central Bank of Nigeria will implement a multi-level AML/KYC system with varied transaction limits.

At the base level, citizens will be able to provide only mobile numbers linked to passport data. The maximum daily limit here will not exceed 50,000 naira (~$120).

The second and third levels require having a bank account and completing various AML/KYC steps (the latter requiring physical presence). Here daily limits will be 200,000 naira ($487) and 1,000,000 naira ($2,438), respectively.

Merchants using the eNaira will be able to send any amounts to their accounts without restrictions.

The regulator plans to enable seamless transfers between CBDC wallets and bank accounts with zero fees for certain types of transactions. Zero fees will allow competition with providers of digital and mobile banking services.

The document also references future integration of the digital naira with policies governing the forex market. It also proposed three technical options for international money transfer operators to work with the CBDC.

Earlier in June, the Central Bank of Nigeria announced the launch of a pilot project with the eNaira.

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