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CBN signs MoU with blockchain firm, Gluwa to boost eNaira adoption 

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The Central Bank of Nigeria (CBN) has signed a Memorandum of Understanding (MoU) with a blockchain firm, Gluwa to drive the increased adoption of Nigeria’s digital currency, eNaira. 

According to a statement from the blockchain firm, the partnership’s core objective is to harness the power of blockchain technology to enhance financial inclusion, improve eNaira functionality, and foster financial innovation. 

By becoming the CBN’s official Partner Agent, Gluwa will integrate its Credal blockchain innovation directly with eNaira, as a first step towards deepened collaboration.

The company said 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 (CBDC).  

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: 

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.  

The IMF, in a report reflecting on the first year of the eNaira’s launch, noted that the digital currency had 24/7 uptime but struggled with “disappointingly low” public adoption, with only 1.5% of wallets engaging in transactions weekly.  

Meanwhile, this announcement comes at a time when the Nigerian government is clamping down on crypto platforms operating in the country.

A major player, Binance, has been at the centre of the battle with the government as two of its top executives were arrested and detained by authorities in the country. 

Binance earlier this week announced the discontinuation of all NGN-related services for Nigerians and advised them to withdraw their NGN assets.  

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