We have collected some of the most interesting questions with answers provided by our analysts. Read below:
Q: The whole essence of blockchain technology is to project decentralisation. eNaira contradicts its essence as it is CBDC, right?
A: No. CBDC goes against the very structure Bitcoin was built on. Well, Bitcoin and other networks claim to be decentralized. However, centralized blockchains like the ISO20022 tokens were built to be centralized.
Blockchain technology is built for permissionless access. This does not mean it is decentralized. Decentralization is a whole different ball game on its own, so the essence of blockchain and decentralized are not mutually exclusive.
2. What investments in Nigeria are safe with 100% transparency?
There are no safe investments. Even governments default on Treasury bills. However, it is very unlikely, hence why it is tagged a low-risk investment. In terms of transparency, investments in the bond or stock market are transparent but as previously mentioned, their risk level varies. There are other forms of investment that are also transparent but ensure they are SEC regulated.
3. What is eNaira?
eNaira is the Nigerian digital currency issued and regulated by the Central Bank of Nigeria (CBN).
4. eNaira is the equivalent of devalued and inflation battered currency. True or false?
True.. eNaira is valued at 1:1 with the Naira; meaning it has the same value as the physical Naira
5. What value does eNaira hold? What is the base of its existence?
eNaira is meant to create a secure and cost-effective process for remittances inflow to the country, amongst other benefits.
Watch out for answers to more of your questions next week.
