Nigeria’s Central Bank Teams Up with Gluwa to Drive CBDC Adoption After Binance Dispute
The Central Bank of Nigeria announced today that it is collaborating with blockchain credit infrastructure company Gluwa to drive the adoption of eNaira, its central bank digital currency (CBDC).
Gluwa hopes to drive adoption by introducing Credal technology to eNaira, which supports lending on the real-asset-centric Creditcoin blockchain the company has developed. Now, when users transact using eNaira, they build a decentralized credit profile that is independent of financial institutions or borders.
“Gluwa has set lofty ambitions to onboard millions of Nigerians by implementing Credal technology to build the credit reputation of eNaira users in a valuable new way to drive CBDC adoption,” says a press release from the company.
Gluwa also hopes to leverage its new position as Partner Agent with the Central Bank of Nigeria to work with lenders and fintech partners to drive adoption by facilitating eNaira transfers directly to customers and establishing eNaira as the final record of record for loans, the company said. added:
eNaira struggles with adoption
Nigeria became the second country in the world to launch its currency, eNaira, in October 2021. However, eNaira has struggled with adoption despite massive cash shortages and recent controversies over Binance’s domestic operations. In a report reflecting on the first year of eNaira’s launch, the IMF noted that although the digital currency operates 24/7, it suffers from “disappointingly low” public adoption, with only 1.5% of wallets participating in transactions each week.
The announcement comes nearly eight months after the Central Bank of Nigeria declared it would revise the current eNaira model to “ensure increased transaction volume and activity by wallet holders.” But Nigeria has been in a public dispute with Binance in recent weeks, fining the company $10 billion and killing two executives after the government claimed Binance, which does not have permission to operate in Nigeria, manipulated the naira exchange rate. It is reported that he was detained. .
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