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IPFS News Link • Central Banks/Banking

Nigerian Central Bank, Real-World Asset Firm Partner to Revive Struggling CBDC


The partnership arrangement aims to improve the functionality of the Nigerian central bank's digital currency and promote financial innovation through blockchain technology.

Improving the CBDC's Utility

Gluwa, a real-world assets platform, has entered into a partnership arrangement with the Central Bank of Nigeria (CBN). This collaboration aims to integrate Gluwa's Credal blockchain innovation directly with Nigeria's central bank digital currency (CBDC) also known as the e-naira. Through this integration, Gluwa hopes to enhance the CBDC's functionality and foster financial innovation.

The selection of Gluwa as the Nigerian central bank's digital currency partner occurred just over a year after it was confirmed that the former was seeking a new technology counterpart. As reported by News in February 2023, the CBN, which initially partnered with Bitt Inc., wanted a new partner that was capable of rolling out a CBDC which gave it total control.

In a statement issued on March 7, Gluwa claimed that the Credal blockchain integration would significantly simplify loan origination, tracking, and settlement. The same benefits would extend to credit scoring for fintech lenders. Commenting on the partnership arrangement with the CBN, the Gluwa stated:

We will roll out plans for improving eNaira's utility throughout 2024 with the CBN, aiming to transform eNaira into a dependable and meaningful currency, setting an example for CBDCs.

Beyond streamlining user experiences, the CBN's integration with Gluwa is also expected to facilitate further simplification of fintech lending.