The eNaira version of the fiat Naira was launched by the president of Nigeria, Muhammadu Buhari on October 25. Upon launch, there have been a series of issues regarding this digital currency. One truth is certain, it is not a cryptocurrency. But it is created on a blockchain. However, many people see the speed wallet app the same way they see bank apps. In this article, let’s explain the differences between them.
A platform for digital currency
One difference between bank apps and eNaira speed wallet is that the latter is a digital currency. And the speed wallet is a platform to store and use this electronic currency. But bank apps make use of the Naira fiat. So, what you have in those apps is simply what you can hold in your hands.
Liabilities to Central Bank of Nigeria
Unlike the bank app, where the money is a liability to the bank, the eNaira is a liability to the central bank of Nigeria. What this means is that if you own the digital currency, it means the CBN owes you such money. And you are a creditor to CBN.
Minting of eNaira
The Nigeria digital currency is minted by a department of CBN called Digital Currency Management System (DCMS). But banking apps can’t mint this currency. Though, some banking apps are known to issue you branded coins or tokens if you make transactions. These coins can be converted to Naira and used to carry out transactions in the respective app, like buying a recharge card.
Blockchain technology for Speed Wallet
The eNaira speed wallet app is built on blockchain technology. This is not true with most banking apps in Nigeria. Blockchain is known to reduce fraudulent acts such as hacking into a bank account.
A Universal App
The app is universal. This means that you can use your digital currency anywhere you go. It is borderless and not affected by foreign exchange. With the electronic currency in your speed wallet app, you can send money from Canada to Nigeria effortlessly. On the contrary, bank apps are limited. Most bank apps work in Nigeria. Although they have offices in other parts of Africa, their mobile applications only work in Nigeria.
No interest payment on the Speed Wallet
The central bank of Nigeria promises that there will be no interest charges for users of eNaira. This implies that your transactions on the wallet will not attract any commission or interest. This is not the case with banking apps. You are charged for most transactions. More so, your bank charge for text messages sent to your phone.
I have listed and explained six differences between the Central Bank of Nigeria speed wallet and most banking wallet applications. Despite the differences, these financial apps have similar functions. That is performing transactions. You can receive or send money through these apps.