Gluwa, a prominent worldwide blockchain company, has requested the Federal Government of Nigeria to assist in the creation of a crypto policy framework. Such a framework could be instrumental in unleashing blockchain’s potential in the largest economy in Africa. By doing so, it could pave the way for novel avenues of economic expansion and innovation in the region.
Gluwa is an Open Finance platform that utilizes blockchain technology to connect capital from developed markets to emerging market lending prospects. Its decentralized infrastructure enables the collection and dispensation of funds worldwide. Additionally, by recording immutable credit data on Creditcoin, Gluwa is equipping a new breed of users with economic resources, information, and access. This transformational approach is redefining people’s understanding of global capital markets.
To this day, Gluwa has developed the world’s first credit repository that is based on blockchain technology. This development has made it possible for financial institutions to combat fraud and improve credit scores by using trustless, on-chain credit history verification through the Creditcoin network. The Gluwa Wallet is an innovative multi-purpose non-custodial wallet that gives users the ability to invest their USDC in a variety of global fintech lending partners via the blockchain.
Gluwa Capital, which is a separate division of the corporation, is also an investor in new businesses and has pledged $35 million to support the expansion of locally-owned financial service providers and cryptocurrency exchanges across Africa. Gluwa’s objective is to provide support to crypto and blockchain startups, with the ultimate aim of promoting the widespread adoption of cryptocurrencies in the region.
Gluwa CEO Tae Oh said: “We believe that cryptocurrencies have the potential to transform the financial landscape in Nigeria and across the African continent. By working closely with the Nigerian government, we hope to create a policy framework that encourages the responsible use of cryptocurrencies while also protecting consumers and preventing criminal activities.”
Driving Economic Growth and Financial Inclusion in Nigeria
Nigeria’s younger demographic has experienced a significant upswing in the adoption and utilization of cryptocurrencies. However, the Nigerian government has not fully embraced digital assets, fearing potential criminal activities like fraud and money laundering. Gluwa believes that by establishing an appropriate policy framework, digital assets can promote financial inclusion and fuel economic growth in Nigeria.
According to Tae Oh: “Gluwa is committed to driving innovation and growth in the blockchain industry, and we believe that Nigeria has tremendous potential in this area. Our proposals have been received by the Ministry of Finance and we earnestly look forward to working with them to create an environment that fosters innovation, encourages investment, and supports the growth of the blockchain industry.”
Supporters of blockchain technology are of the opinion that digital assets can be instrumental in resolving numerous longstanding issues that plague Nigeria’s financial system. These issues include high transaction costs, restricted credit availability, and insufficient financial inclusivity. They acknowledge the ability of blockchain technology to facilitate economic growth and financial inclusivity.
Ahmed Gloria Kufeji, a Director at the Nigerian Ministry of Finance, said: “We are pleased to see interest from companies like Gluwa in supporting the growth and development of the blockchain industry in Nigeria. We recognize the potential of blockchain technology to drive economic growth and financial inclusion, and we are committed to creating a policy framework that encourages innovation and investment while also protecting consumers and preventing criminal activities.”
The Nigerian Securities and Exchange Commission (SEC) has implemented regulations for digital assets, including guidelines for initial coin offerings (ICOs) and other crypto-related activities. Gluwa’s declaration represents a positive development for the African blockchain industry, as it aims to enhance regulatory clarity and encourage greater acceptance of crypto-assets.
The founder of Blockchain Africa Society, Tebogo Thobeje, has expressed support for such proposals. He said: “Gluwa’s announcement is a positive development for the African blockchain industry, with Nigeria at the forefront. We hope the government takes a proactive approach to support the growth of the blockchain industry, and we look forward to working with Gluwa and other important stakeholders to achieve this goal.”
Supporting Wider Crypto Adoption in Nigeria
The Central Bank of Nigeria instructed all commercial banks to shut down accounts associated with crypto exchanges and imposed fines on non-compliant institutions in 2021. Nonetheless, a circular was issued by the bank and signed by Osita Nwanisobi, the former Director of Corporate Communications at the apex bank. This circular was made available to reporters in Abuja.
He commented: “Its actions thus far are not in any way, shape or form inimical to the development of Fintech and technology-driven payment systems. On the contrary, the Nigerian financial system has evolved significantly over the last decade, leapfrogging many of its counterparts in emerging, frontier, and advanced economies propelled by reforms driven by the CBN. This is evident from the variety of participants, products, channels, and cutting-edge technology in the payments system.”
Clem Agba, the Minister of State for the Ministry of Finance, Budget, and National Planning, has stated that the Federal Government is capable of regulating the cryptocurrency industry. He expressed the Federal Government’s optimism regarding the several opportunities that the crypto industry currently presents to average Nigerians. He recognized the potential of cryptocurrencies as the most significant disruptor in the finance sector but also acknowledged the need for the government to provide supervisory guidance to the industry.
He further added: “Regulation of the industry doesn’t necessarily mean a giant hammer slamming down on activities but rather to optimize conditions for growth, tailored towards the industry. There is a need for the creation of a new regulatory body to oversee the regulation of crypto activities in the country. Nigeria’s Securities and Exchange Commission is currently in talks with the Central Bank of Nigeria to chart a clearer path towards understanding and regulation of the crypto space.”
Overall, the African blockchain industry has received Gluwa’s announcement positively. Crypto enthusiasts are thrilled to witness Gluwa’s bold efforts to encourage the acceptance and utilization of cryptocurrencies in Nigeria. They are confident that cryptocurrencies can revolutionize Nigeria’s financial landscape and the African continent at large, and are eager to witness the developments that will emerge in the future.
