CBN, Gluwa to Drive eNaira Adoption After Binance Exit

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) and a blockchain credit infrastructure company, Gluwa, have crafted a partnership to promote the adoption of eNaira, Nigeria’s central bank digital currency (CBDC).

The company announced on Thursday that it would help drive more adoption of the eNaira which is yet to find appeal with Nigerians after more than three years since it was launched by the administration of former President Muhammadu Buhari and former CBN Governor, Mr Godwin Emefiele.

Nigeria launched the eNaira in October 2021 and became the second country to launch a CBDC in the world after the Bahamas.

According to a statement, Gluwa hopes to drive adoption by introducing its Credal technology to the eNaira, which powers loans on the real-world asset-oriented Creditcoin blockchain developed by the company.

So, when users transact using the eNaira, they will also build a decentralized credit profile independent of any financial institution or national borders, according to the company.

“Gluwa sets its high ambitions of onboarding millions of Nigerians by implementing its Credal technology to build credit reputations for eNaira users as a valuable new way to drive the adoption of the CBDC,” the company’s statement reads in part.

Gluwa also hopes to use its new position as a partner agent of CBN to foster adoption by working with lenders and fintech partners to facilitate direct eNaira transfers to customers and establish the eNaira as the definitive record for loans.

The CBN will be counting on this approach to boost the eNaira which has struggled with adoption, even following moves a year ago by the CBN to drive digital adoption that led to cash shortages and a recent spat over Binance’s operations in the country.

Last year, the central bank declared it would amend the current eNaira model to “ensure an increase in the volume and activity of wallet holders.”

The crypto exchange has suspended all Naira services after Nigeria threatened to fine it $10 billion and reportedly detained two executives after the government alleged Binance, which is not authorized to operate in the country, manipulated foreign exchange rates for the Naira.