CBN collaborates with Gluwa to help promote the adoption of the eNaira. The Central Bank of Nigeria and Blockchain company Gluwa have now entered a partnership to help boost the utilization of the nation’s digital currency, eNaira.
CBN Collaborates with Gluwa
Gluwa has unveiled ambitious plans to drive mass adoption of the eNaira among millions of Nigerians through its Credal technology, which aims to establish credit reputations for users.
The partnership aims to streamline the process of accessing loans for fintech lenders by facilitating direct eNaira transfers to customers. Utilizing advanced encryption measures, Gluwa prioritizes security to safeguard all transactions effectively.
The Collaboration between CBN and Gluwa
Furthermore, the collaboration seeks to position the eNaira as the primary ledger for all loan transactions, emphasizing accuracy and transparency in financial dealings. Gluwa intends to implement a robust authentication mechanism, leveraging encryption technologies to offer users a secure and compliant channel for accessing financial services.
Binance’s Decision to Stop All Services Involving the Nigerian Currency
This development comes on the heels of Binance’s decision to halt all services involving the Nigerian currency, signaling a shifting landscape in the fintech sector. As for the eNaira itself, the digital currency was introduced in October 2021; however, its adoption has been relatively sluggish.
The Challenges Faced by eNaira in Terms Of Adoption
In 2023, the International Monetary Fund (IMF) published a research paper shedding light on the challenges faced by eNaira in terms of adoption, indicating less-than-encouraging figures.
In response, the Nigerian government has taken proactive measures to promote the use of eNaira, including advocating for its utilization in salary payments and school fees transactions. These efforts underscore the government’s commitment to driving widespread adoption of the digital currency and realizing its potential benefits for the Nigerian economy.
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