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Liberia’s CBDC Collaboration with Gluwa
West African nation Liberia is considering the creation of a central bank digital currency (CBDC) in partnership with real-world asset platform Gluwa. Gluwa, known for its recent collaboration with the Bank of Nigeria (CBN) for the ‘eNaira’ CBDC, will be involved in the research and development of Liberia’s CBDC. Tae Oh, CEO of Gluwa, met with Liberia’s President, Joseph Boakai, to explore the potential of establishing a CBDC.
Government Commitment to Economic Growth
The meeting between Gluwa’s CEO and the President of Liberia was seen as an opportunity to gain insights into the government’s dedication to economic advancement, as noted by Boakai.
Addressing Internet Connectivity Challenges
According to Gluwa’s announcement on March 15, discussions with the country’s president also touched on Liberia’s slow internet connectivity, which has hindered digital inclusivity in rural areas. A recent internet disruption on March 14 lasting over 14 hours affected online transactions, including mobile money transfers and banking services.
- Gluwa proposed the introduction of a satellite-based Internet Service Provider (ISP) tailored to offer affordable internet access to rural areas.
- The CBDC initiative in Liberia would need to be compatible with the existing mobile money system in the country, as highlighted by Gluwa.
- Gluwa’s ISP solution is designed to support the infrastructure necessary for the adoption of Liberia’s CBDC.
Gluwa’s Regional CBDC Initiatives
Gluwa is actively involved in supporting the development of CBDCs in multiple West African countries:
Ghana
Gluwa engaged with Ghana’s Vice President, Mahamudu Bawumia, to discuss enhancing financial inclusivity. The CEO, Tae Oh, participated in talks regarding the progress of Ghana’s Central Bank Digital Currency.
Nigeria
In Nigeria, Gluwa signed a Memorandum of Understanding (MoU) with the CBN to become a Partner Agent for eNaira. The company plans to integrate its Credal blockchain innovation directly into Nigeria’s CBDC. The partnership aims to streamline fintech lending, enhance transaction security, and implement robust user authentication mechanisms.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
