CBN COLLABORATES WITH GLUWA TO FACILITATE ENAIRA ADOPTION

Soon after Binance ceased all its operations in Nigerian currency, Gluwa, a blockchain solution provider, entered into a Memorandum of Understanding (MoU) with the Central Bank of Nigeria (CBN) to facilitate the increased usage of the Central Bank Digital Currency (CBDC), eNaira.

Tae Oh, Gluwa CEO, also held discussions with Nigeria’s Vice President, Kashim Shettima, where they explored possible collaborations between the country and the blockchain firm to enhance Nigeria’s digital landscape, with a focus on fintech solutions to improve infrastructure for Nigerians.

The collaboration will mainly concentrate on utilizing blockchain technology to enhance eNaira functionality, drive financial inclusion, and create space for financial innovation.

As the first step in deeper collaboration as the apex bank’s official Partner Agent, Gluwa plans to directly integrate its Credal blockchain API technology with eNaira. This move aims to attract millions of Nigerians, enhancing their credit reputations.

The partnership will simplify local fintech lenders’ processing of loans, including origination, tracking, and settlement, through direct eNaira transfers to customers. Gluwa ensures that this will improve the speed and efficiency of services.

As a result, eNaira will be established as the definitive record for all loan transactions by fintech partners, further enhancing accuracy and transparency.

Gluwa also pledges to implement a secure authentication mechanism utilizing asymmetric encryption with private/public keys, providing users with a safe, private, and, most importantly, regulatory-compliant way to access financial services.

According to Gluwa, officially partnering with the CBN is a significant step in its mission to create a borderless financial ecosystem that prioritizes emerging markets, promoting greater financial inclusion.

Gluwa has also announced plans to launch its satellite-based ISP solution to provide internet services in Nigeria’s underserved areas to further its mission.

This development followed Binance terminating all its services in Nigerian currency on its platform.

Nigeria launched the eNaira in October 2021, but the apex bank has struggled to drive adoption. According to a report by the International Monetary Fund (IMF) in 2023, only about 1.5% of wallets engaged in transactions weekly, indicating a low adoption rate. This led the Nigerian government to push for eNaira-based payments for salaries and school fees.

Osamu Ekhator; From the News Source: TechPoint