The Central Bank of Nigeria (CBN) has joined forces with Gluwa Nigeria, a blockchain financial platform, to enhance the adoption and utility of Nigeria's digital currency, the eNaira.
This collaboration focuses on leveraging technology to improve financial inclusivity for Nigeria's unbanked population.
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Despite the eNaira being the world's second-oldest central bank digital currency (CBDC) since its launch in October 2021, adoption rates have been modest. Thus, this initiative aims to boost engagement with the digital currency.
This integration is expected to streamline various financial processes, thereby increasing the CBDC's appeal and functionality.
Tae Oh, the CEO of Gluwa and head of the Creditcoin Network, stated the benefits of utilizing Gluwa's Credal technology:
Credal’s integration with eNaira will enable easier loan origination, tracking, settlement, and credit scoring for local fintech lenders.
He highlighted that the project aims to facilitate the establishment of credit reputations for those without traditional banking access. In addition, the credit profiles are designed to be globally accessible, thereby advancing financial inclusivity.
As the project progresses, it will likely serve as a model for similar initiatives worldwide, highlighting the potential of technology to bridge economic gaps.
In other news, Binance has announced the discontinuation of all services involving the Nigerian naira (NGN) by March 8 due to regulatory challenges. Users are urged to withdraw or convert their NGN holdings before the deadline.
