The Central Bank of Nigeria (CBN) has collaborated with Gluwa Nigeria, blockchain technology firm, to drive the adoption of the nation’s eNaira currency.

The partnership is hinged on issuance of application programming interfaces (APIs) to Gluwa for integration with the firm’s Credal blockchain technology.

The proposed connection through Credal is intended to ensure easier loan origination, tracking, settlement, and credit rating for local fintech lenders.

The “core objective is to harness the power of blockchain technology to enhance financial inclusion, improve eNaira functionality, and foster financial innovation,” Gluwa said in a statement

Nigeria has been trying to broaden acceptance of the central bank digital currency (CBDC) since its launch in 2021.

According to media reports, fewer than 1.15 million Nigerians in October 2022 had used the eNaira since its inception till date.

The adoption rate has been impressive so far, as the number of eNaira wallets increased more than 12-fold between October 2022 and March 2023 to 13 million and the value of transactions climbed 63% to N22 billion naira in the first four months of last year.