The Central Bank of Nigeria (CBN) has taken a significant step towards advancing the adoption of Nigeria’s digital currency (CBDC), known as the eNaira, through a strategic partnership with Gluwa Nigeria Limited (Gluwa), a blockchain firm.
The collaboration, solidified by a Memorandum of Understanding (MoU), aims to support blockchain technology to enhance financial inclusion and innovation across the nation.
Under this partnership, Gluwa will act as a partner agent, committed to utilizing its state-of-the-art Credal blockchain technology to augment the functionality of eNaira and promote its availability in the country. This collaboration marks the initiation of an effort to integrate millions of Nigerians into the Central Bank Digital Currency (CBDC) ecosystem.
The integration of Gluwa’s Credal technology with the eNaira platform is assured to transform the landscape of financial services in Nigeria. By facilitating the establishment of credit reputations for eNaira users, Credal introduces an innovative approach to increase CBDC adoption. This integration is expected to streamline various financial processes, including loan origination, management, settlement, and credit assessment for local fintech lenders.
A crucial issue addressed by Credal is the limited accessibility of credit data within traditional banking frameworks, which often excludes the unbanked population from establishing credit histories. Furthermore, it overcomes the challenge of credit profiles being confined to domestic borders, thus fostering global financial inclusivity.
Gluwa’s Credal blockchain technology has already made significant strides in the fintech space, processing over 4.27 million loan transactions valued at $80 million and serving more than 337,000 users. This innovation empowers fintech clients to participate in global investment opportunities through pseudo-anonymous credit profiles, thereby enhancing financial inclusivity and empowerment.
Gluwa, established on its pioneering L1 blockchain platform, sets the stage for consistent cross-chain credit markets. By collaborating with technology partners, fintech lenders, such as Aella, and engaging with financial institutions in global emerging markets, Gluwa aims to facilitate capital financing, build credit histories, and foster trust among millions of financially deprived individuals and businesses.
Gluwa expressed enthusiasm about the partnership with the CBN, emphasizing its core objective of making use of blockchain technology to improve eNaira’s technical functionalities and drive wider adoption. The company aims to onboard millions of Nigerians onto the eNaira platform, helping them build secure, on-chain credit reputations as a means to drive CBDC adoption forward.
The partnership between the CBN and Gluwa signifies a landmark collaboration aimed at transforming Nigeria’s financial landscape. By leveraging blockchain technology, the initiative seeks to enhance financial inclusion, improve eNaira functionality, and foster financial innovation, ultimately paving the way for a more inclusive and prosperous financial future for all Nigerians.
