CBN and Gluwa Partner to Boost the Use of eNaira

Nigeria’s Central Bank, (CBN) has collaborated with Gluwa, a notable blockchain technology company, in a strategic relationship aimed at substantively increasing the use of eNaira, Nigeria’s Central Bank Digital Currency (CBDC).

This joint task, formalized through a signed Memorandum of Understanding (MoU), is crucial in generating a more financially inclusive and technologically driven financial sub-sector in the Nigerian economy.

A Pressing Need for Increased eNaira Usage

Launched in October 2021, eNaira was heralded as a pioneering initiative on the African continent.

On the other hand, the promise of eNaira is impressive and there is no doubt that it will be adaptable, but its adoption is yet to meet expectations.

As of mid-2023, data revealed that less than 1% of Nigerians using banks were in possession of eNaira wallets, with an even lower percentage actively using them on a weekly basis.

However, this underwhelming adoption rate prompted the CBN to seek out collaborative solutions to bridge the gap and unlock the full potential of eNaira.

Gluwa’s Blockchain Experience Will be a Major Force in Financial Services Inclusion

Gluwa is set to be a part of this partnership, and this is where the world sees the power of its Credal blockchain technology.

A competent feature of its service is that of establishing “credit reputations” for people who might be denied access to traditional banking services.

The distinct offer represents a game changer that could increase eNaira adoption, especially among the broadly unbanked population in Nigeria.

By enabling the creation of these credit profiles, Gluwa paves the way for broader financial inclusion, allowing previously excluded individuals to participate in the eNaira ecosystem.

Improving eNaira Functionality Through Technology Adoption

The use of internal memory as well as technological development can help eNaira.

For example, the use of internal memory, just like in the case of mobile phones, to save important financial information.

The CBN and Gluwa’s partnership extends beyond credit profiles.

The MoU paves the way for the integration of Gluwa’s Credal technology into the core eNaira platform.

This kind of integration is supposed to boost the technical usability of eNaira, which in turn can lead to a more seamless user experience and a new set of features for consumers.

Although the specifics of these components’ functionality have not been revealed yet, experts anticipate improvements in areas such as faster transaction processing times, increased security measures, and potentially even the introduction of novel functionalities that leverage the unique capabilities of blockchain technology.

Fostering Innovation in Nigeria’s Financial Sector

This relationship between the CBN and Gluwa carries the message that innovativeness is given a green light within the Nigerian financial industry.

So, through integrating blockchain tech and investigating the role of eNaira in this appeal, the parties desire to develop a financial system that is more integrated and dynamic.

Success in this collaboration could generate opportunities in other business sectors and help the Nigerian economy to transition completely into blockchain-based solutions.

Looking Ahead: A Brighter Future for eNaira

The CBN-Gluwa collaboration seems to bring great prospects in respect of eNaira development.

The leverage of financial inclusion strategies and technological integration to overcome the problem of low adoption rates should be expected, along with the possibility of eNaira’s widespread adoption.

The eNaira partnership is expected to evolve into a more extensive and user-friendly platform.

As it grows, its masterpiece will be no other than a better future for the Nigerian financial sector.