The Central Financial institution of Nigeria has signed a Memorandum of Understanding with blockchain agency, Gluwa, to speed up the adoption of eNaira, Nigeria’s digital foreign money.
In an announcement made on Thursday, Gluwa disclosed that the partnership aimed toward utilising blockchain know-how to strengthen the technical capabilities of the eNaira.
The corporate mentioned it’s going to onboard tens of millions of Nigerians by implementing its credal know-how to construct credit score reputations for eNaira customers, providing a invaluable new strategy to driving the adoption of the eNaira.
“We’re thrilled to share monumental information! After years of relentless effort, Gluwa has signed a Memorandum of Understanding with the Central Financial institution of Nigeria to formally onboard as a companion agent and assist drive the elevated adoption of Nigeria’s CBDC, also referred to as eNaira.
“The partnership’s core goal is to harness the ability of blockchain know-how to reinforce monetary inclusion, enhance eNaira performance, and foster monetary innovation.
“Step one in the direction of deepened collaboration is to combine Gluwa’s Credal blockchain innovation straight with Nigeria’s CBDC (eNaira).
“Gluwa is aiming to onboard tens of millions of Nigerians and assist them construct safe, on-chain credit score reputations as a invaluable new mechanism to drive CBDC adoption.
“As well as, Credal’s integration with eNaira will allow simpler mortgage origination, monitoring, settlement, and credit score scoring for native fintech lenders,” the blockchain firm mentioned in an announcement.
Nigeria launched its digital foreign money, eNaira, in October 2021 to spice up monetary inclusion, facilitating cross-border transactions, and improve diaspora remittances. Nevertheless, over the previous two years since its launch, adoption has been sluggish, dealing with varied challenges.
In line with a paper titled “Nigeria’s eNaira, One 12 months After” by the Worldwide Financial Fund, the adoption of eNaira has been disappointingly low.
The report highlighted that round 98.5 per cent of eNaira wallets downloaded after the digital foreign money’s launch have been deserted, with just one.5 per cent being actively used for transactions.
In response to those challenges, stakeholders suggested the CBN final yr to collaborate with fintech firms, emphasizing the significance of such partnerships in driving the adoption of eNaira.
