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Joseph Angaye says eNaira deepens the payment infrastructures as eNaira integrates with NFC chip

 

By Nerly Shammah Jul 28, 2023

 

It was created to deepen the financial payment system infrastructure. It’s not a competitor for banks and other payment systems services providers, said Joseph Angaye, CBN leader and functioning deputy director, the risk management department. 

 

The Apex Bank of Nigeria, CBN was reportedly the second central bank in the world to release a central bank digital currency(CBDC) in the wake of its urgency following the popularity and widespread usage of cryptocurrencies - the often decentralized and privacy-focused digital currencies. 

 

Although the eNaira has not been widely used when compared to cryptocurrency usage in the country, the Apex Bank has continually taken steps to build new layers of features for its new payment technology envisioned to revolutionize Fintech and potentially usher in an era of a cashless economy. 

 

In recent reports, the Apex bank looks to boost its service offerings by adopting Near Field Communication (NFC), a technology that enables "contactless payments" between close devices. 

 

The technology of the NFC allows for the communication of devices near each other like a mobile phone and a payment terminal, Joseph Angaye spoke in acknowledgement of the programmable nature of the eNaira technology and how it can deepen payments infrastructures. 

 

Due to the nature of NPC, particularly its short-range wireless connectivity network, this new integration looks to turn any device into a suitable payment recipient. 

 

As noted by Shadrach Abdul, a CBN official, the NFC technology turns any device into a smart payment system with a simple sticker. 

 

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Even if you don’t have a smartphone, you can stick it to any phone and it automatically makes it a smartphone and offers the same service. You can use it with any eNaira merchant.

 

It’s going to be revolutionary and we thought it wise to deploy at the University of Abuja.

 

It presents a world of new opportunities and will be a game changer in the University’s accounting systems

 

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Prof Aisha Sani Maikudi, the Deputy Vice-Chancellor, Academics, of the University showed her support by pledging to educate and sensitise the school community about the inherent gains of adopting the eNaira as a transaction platform.

 

However, it is important to note that despite being launched in 2021 with numerous adoption initiatives being deployed, Nigeria's central bank digital currency - eNaira has yet to attain its desired adoption. 

 

These failures were accredited to the commercial banks' prioritization of "profits" over embracing the technology of scale by the former CBN governor Mr Godwin Emefiele. 

 

However, speculations attribute the restraint of adoption faced by the CBDC - eNaira - to be due to concerns over financial privacy and the absolute central control that comes with a central bank directly monitored and controlled currency.