LAGOS, Nigeria ( VOICE OF NAIJA)–The Central Bank of Nigeria (CBN) has signed a Memorandum of Understanding (MoU) with Gluwa, a blockchain company, to accelerate the adoption of the eNaira.Â
The collaboration follows calls from stakeholders last October for the CBN to collaborate with financial technology firms to promote Nigeria’s digital currency.
The move comes shortly after Binance, the world’s largest cryptocurrency exchange platform, announced its suspension of operations in Nigeria in response to regulatory actions against crypto platforms.
Speaking on the partnership, Gluwa emphasised that the collaboration aims to leverage blockchain technology to enhance the technical capabilities of the eNaira, driving broader adoption and fostering financial inclusion across Nigeria.
Gluwa expressed excitement about the partnership, stating: “After years of relentless effort, Gluwa has signed a 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.”
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As part of the partnership, Gluwa plans to integrate its Credal blockchain innovation with the eNaira, enabling easier loan origination, tracking, settlement, and credit scoring for local fintech lenders. The ultimate goal is to harness the potential of blockchain technology to enhance financial inclusion, improve eNaira functionalities, and drive financial innovation.
Since its launch on October 25, 2021, under former Governor Godwin Emefiele, the eNaira has struggled to gain traction among Nigerians, with low usage reported.
According to the International Monetary Fund (IMF), as of May 2023, approximately 98.5 percent of eNaira wallets have yet to be utilised, indicating a slow uptake beyond the initial enthusiasm.
Earlier reports revealed that the CBN proposed the e-Naira as the preferred option for disbursing $800 million (about N368.8 billion) in the National Social Safety Net Programme Scale-Up.
This move aligns with the CBN’s efforts to bolster its cashless policy and promote digital financial services across Nigeria. The proposal was outlined in the CBN’s National Fintech Strategy document.