The Central Bank of Nigeria has signed a Memorandum of Understanding with a blockchain firm, Gluwa to drive the increased adoption of Nigeria’s digital currency, eNaira.
According to the statement by the blockchain firm, the main objective of the partnership is to exploit the power of cryptocurrencies, enhance financial inclusion, improve eNaira functionality and encourage financial innovation.
Gluwa will integrate its Credal blockchain innovation directly with eNaira as the first step in towards deepened collaboration.
The company stated it aims to onboard millions of Nigerians by implementing its Credal technology to build credit reputations for eNaira users as a valuable new way to drive the adoption of the Central Bank Digital Currency.
As to the inclusion of its Credal technology in local fintech, it notes that this would make loan origination, monitoring, settlement and credit rating simpler.
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.”
In its continued efforts to build a borderless financial ecosystem that focuses on emerging markets to foster greater financial inclusion, the company stated that becoming an official technology partner of the Central Bank of Nigeria is a major step forward.
Recall, 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.
