The news:
- Shortly after Binance discontinued all its services in Nigerian currency, Gluwa, a blockchain solution provider, signed a Memorandum of Understanding (MoU) with the Central Bank of Nigeria (CBN) to help boost the increased use of the central bank digital currency (CBDC), eNaira.
- Tae Oh, Gluwa CEO, also met with Nigeria's Vice President, Kashim Shettima, where both parties discussed various ways the country could collaborate with the blockchain firm to improve the West African nation's digital landscape, with a focus on fintech solutions to improve infrastructure for Nigerians.
- The partnership will primarily focus on using blockchain technology to improve eNaira functionality, drive financial inclusion, and create space for financial innovation.
To take the first step towards deeper collaboration as the apex bank's official Partner Agent, Gluwa intends to integrate its Credal blockchain API technology directly with eNaira. This move is expected to attract millions of Nigerians, boosting credit reputations.
The collaboration will make it easier for local fintech lenders to process loans — origination, tracking, and settlement — by allowing direct eNaira transfers to customers. Gluwa guarantees this will improve the speed and efficiency of the services provided.
Consequently, this will establish eNaira as the definitive record for all loan transactions by fintech partners, further enhancing accuracy and transparency.
Gluwa also promises to implement a secure authentication mechanism that uses asymmetric encryption with private/public keys to provide its users with a safe, private, and, most importantly, regulatory-compliant way to access financial services.
According to Gluwa, officially partnering with the CBN is a significant step in its mission to create a borderless financial ecosystem that prioritises emerging markets, thereby promoting greater financial inclusion.
Gluwa also announced plans to launch its satellite-based ISP solution to help provide internet services in Nigeria's underserved areas to further its mission.
This development came after Binance terminated all its services in Nigerian currency on its platform.
Nigeria launched the eNaira in October 2021, but the apex bank has struggled to effect its adoption.
Following a report by the International Monetary Fund (IMF) in 2023 about eNaira’s first-year progress, only about 1.5% of wallets engaged in transactions weekly, marking a severely low adoption rate. This made the Nigerian government push for eNaira-based payment for salaries and school fees.
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