CBN partners Gluwa to boost eNaira adoption

By Sodiq Adelakun

In a significant move to advance the adoption of Nigeria’s digital currency, the Central Bank of Nigeria (CBN) has entered into a strategic partnership with blockchain firm Gluwa.

The collaboration, formalised through a Memorandum of Understanding (MoU), aims to leverage blockchain technology to drive financial inclusion and enhance the functionality of the eNaira.

Gluwa, now the CBN’s official Partner Agent, will be integrating its innovative Credal blockchain system with the eNaira platform. This integration marks the first phase of a deeper collaboration designed to revolutionise Nigeria’s financial landscape.

The blockchain firm’s Credal technology is set to play a pivotal role in building credit reputations for eNaira users. This initiative is expected to onboard millions of Nigerians into the digital economy, positioning the Central Bank Digital Currency (CBDC) as a catalyst for financial innovation.

A primary focus of the partnership is to streamline the loan origination process for fintech lenders. By enabling direct eNaira transfers to customers, Gluwa’s Credpal technology will significantly enhance the speed and efficiency of financial services.

Additionally, the eNaira will serve as the definitive record for all loan transactions conducted by fintech partners, promoting accuracy and transparency in financial operations and credit scoring.

While noting that the integration of its Credpal technology would enable easier loan origination, tracking, settlement, and credit scoring for local fintech, Gluwa said the partnership will focus on:

“Enabling fintech lenders to expedite the loan origination process by facilitating direct eNaira transfers to customers, thereby enhancing the speed and efficiency of services provided.

 ”Establishing the eNaira as the definitive record for all loan transactions conducted by fintech partners, ensuring accuracy and transparency in financial operations and credit scoring.

“Implementing a robust authentication mechanism utilizing asymmetric encryption with private/public keys, to offer users a secure, private, and regulatory-compliant way of accessing financial services.”

The company added that becoming an official technology partner of the CBN marks a major leap forward in its continued mission to build a borderless financial ecosystem that focuses on emerging markets to foster greater financial inclusion.

Nigeria launched the eNaira in October 2021, and it became the world’s second CBDC to be launched.  However, the eNaira has struggled with adoption, even following devastating cash shortages and a recent spat over Binance’s operations in the country.