To mitigate potential risks, the IMF stated that steps have been taken. The report read:
“The authorities have taken measures to manage the risks. The transfer of funds from bank deposits to eNaira wallets is subject to daily transactions and balance limits to mitigate the risks of diminishing the roles of banks and other financial institutions.
“Financial integrity risks, such as those arising from the potential use of the eNaira for money laundering, are mitigated by using a tiered identity verification system and applying more stringent controls to relatively less verified users.”
Because of the size and complexity of Nigeria’s economy, the debut of the digital currency has piqued the interest of the international community and other central banks, according to the IMF.
The eNaira, according to the organisation, is based on the same blockchain technology as Bitcoin and Ethereum, but it is not a financial asset. The IMF also noted that the e-Naira will improve financial inclusion, make remittances easier to send and reduce informality.