TheCable

The Central Bank of Nigeria (CBN) has signed a memorandum of understanding (MoU) with Gluwa, a blockchain firm, to drive the increased adoption of eNaira, Nigeria’s digital currency.

On October 4, 2023, stakeholders had advised CBN to collaborate with fintech companies to aid the adoption of eNaira.

The eNaira, a central bank digital currency (CBDC), is an innovation of Nigeria’s apex bank.

In a statement, Gluwa announced the new partnership will leverage blockchain technology.

According to the company, this collaboration aims to improve eNaira’s technical functionalities, driving wider adoption and boosting financial inclusion across Nigeria.

“We are thrilled to share monumental news! After years of relentless effort, Gluwa has signed a Memorandum of Understanding (MoU) with the Central Bank of Nigeria (CBN) to officially onboard as a Partner Agent and help drive the increased adoption of Nigeria’s CBDC, also known as eNaira,” the company said.

“The partnership’s core objective is to harness the power of blockchain technology to enhance financial inclusion, improve eNaira functionality, and foster financial innovation.

“The first step towards deepened collaboration is to integrate Gluwa’s Credal blockchain innovation directly with Nigeria’s CBDC (eNaira).

“Gluwa is aiming to onboard millions of Nigerians and help them build secure, on-chain credit reputations as a valuable new mechanism to drive CBDC adoption.

“In addition, Credal’s integration with eNaira will enable easier loan origination, tracking, settlement, and credit scoring for local fintech lenders.”

On May 22, 2023, the International Monetary Fund (IMF) said 98.5 percent of eNaira wallets have not been used even once.

President Muhammadu Buhari formally launched the digital currency at the state house in Abuja on October 25, 2021.

The IMF said despite the laudable undisrupted operation for the first full year, the CBDC project has not yet moved beyond the initial wave of limited adoption.