The Central Bank of Nigeria has partnered with Convexity to speed up the adoption of eNaira. The apex bank wants to also carry out more sensitization on the essence of the eNaira with the blockchain firm.
Convexity is a Nigerian-based tech firm focused on developing blockchain solutions and products. Part of its service is to offer consultations on building and launching products developed on the blockchain technology.
eNaira is Nigeria’s first Central Bank Digital Currency (CBDC) launched in Q4 2021 to help drive financial inclusion in the country. According to the Central Bank, the project is meant to help bank the unbanked, and provide a more flexible digital financial tool that will boost investments and business transactions in the country.
Low adoption of eNaira
While it’s part of the step the bank designed to implement the cashless policy, the eNaira has had a low adoption rate. Nigerians are yet to fully embrace the currency due to several factors.
These include doubt about the transparency of the CBDC, little to no insight into the essence of the CBDC since there’s an already existing digital form of the naira in use between commercial banks and customers, and other reasons.
Bitt inc, R3, & Convexity
Prior to the launch, Bitt Inc, a Barbados-based tech firm, was contacted as the key partner in the release of the CBDC. In February 2023, the CBN reached out to R3, a blockchain company in New York, to discuss changing the underlying infrastructure of the eNaira.
Speaking about the mutual agreement with the CBN, Convexity said that the partnership will strengthen the “confidence between the private sector who are champions of the Nigerian economy” foreign exchange market and the Central Bank of Nigeria.
Convexity is the first blockchain hub in Nigeria.