In a strategic move to boost the widespread adoption of Nigeria's digital currency, eNaira, the Central Bank of Nigeria (CBN) has officially partnered with blockchain firm Gluwa, formalizing their collaboration through the signing of a Memorandum of Understanding (MoU).
The primary aim of this partnership, as outlined by Gluwa in a released statement, is to leverage blockchain technology to not only promote financial inclusion but also enhance the functionality of eNaira while fostering innovation in the financial sector.
As the designated Partner Agent for the CBN, Gluwa is set to integrate its innovative Credal blockchain technology directly with eNaira, marking the initial phase of what promises to be a more extensive and collaborative effort.
The company's overarching goal is to facilitate the onboarding of millions of Nigerians by implementing its Credal technology, which, in turn, will establish credit reputations for eNaira users. This innovative approach aims to serve as a catalyst for driving the adoption of the Central Bank Digital Currency (CBDC).
Although Nigeria introduced eNaira in October 2021, positioning it as the world's second Central Bank Digital Currency, the currency has faced challenges in gaining widespread acceptance. In response to these challenges, the CBN's partnership with Gluwa signifies a proactive step toward addressing adoption concerns and enhancing the overall utility of eNaira.
The International Monetary Fund (IMF), reflecting on the inaugural year of eNaira's launch, acknowledged the digital currency's consistent 24/7 uptime. However, the report raised concerns about "disappointingly low" public adoption, with only 1.5% of eNaira wallets engaging in transactions on a weekly basis.
This collaboration with Gluwa, therefore, appears to be a strategic response to these adoption challenges, signaling a commitment to overcoming barriers and fostering the broader integration of eNaira into the financial landscape.
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