Nigeria Teams Up with Blockchain Firm Gluwa to Drive eNaira Adoption

The Federal Government of Nigeria, in collaboration with the Central Bank of Nigeria (CBN), has joined forces with blockchain technology firm Gluwa to accelerate the adoption and efficiency of the nation’s digital currency, the eNaira.

Functioning as an agent partner of the CBN, Gluwa will integrate its Credal technology into the eNaira platform, facilitating the establishment of credit reputations for unbanked users, thereby advancing financial inclusion. These credit profiles will be accessible across borders, amplifying the effectiveness of the Central Bank Digital Currency (CBDC).

In a press release, Gluwa highlighted that the primary objective of the partnership is to leverage blockchain technology to enrich financial inclusion, enhance the functionality of the eNaira, and drive financial innovation.

Gluwa further revealed its plans to enhance the utility of the eNaira throughout 2024, aligning with the CBN’s vision to elevate the eNaira into a benchmark example of CBDCs, thereby transforming it into a reliable and meaningful currency for its users.

Moreover, the partnership between Gluwa and the CBN will concentrate on the following key areas:

• Streamlining Fintech Lending: Facilitating direct eNaira transfers to customers enables fintech lenders to expedite the loan origination process, thereby enhancing the speed and efficiency of services provided.
• Transaction Authentication: Positioning the eNaira as the definitive record for all loan transactions conducted by fintech partners ensures accuracy and transparency in financial operations and credit scoring.
• User Authentication: Implementing a robust authentication mechanism utilizing asymmetric encryption with private/public keys offers users a secure, private, and regulatory-compliant approach to accessing financial services.

CBN’s collaboration with Gluwa represents the latest effort by the apex bank to bolster the adoption of the eNaira. Since its launch in October 2021, the digital currency has been a focal point of Nigeria’s journey towards a more inclusive and digitally-driven financial ecosystem.