DeFi startup Gluwa eyes partnership with Federal Government of Nigeria on Crypto Legalization

In just a little over a decade, cryptocurrencies have evolved from a niche digital currency used by a small group of enthusiasts to becoming a significant player in the modern financial landscape. As of last year, at least ten countries have legalized the use of cryptocurrency. Nigeria, the biggest economy in Africa, is now poised to join a list of existing countries, such as Canada, El Salvador, Estonia, Germany, Switzerland, and others.

Late last year, NASDAQ reported that the Nigerian government is looking at the use of Bitcoin in Africa’s largest economy. Citing a Nigerian local newspaper, the publication reported that Nigeria “will soon pass a law making the usage of Bitcoin and cryptocurrencies legal.” But to make the implementation a success, the Nigerian government is going to need all the help it can get, especially from blockchain companies with a vast array of experience in cryptocurrency.

It’s for this reason that Gluwa, a prominent global blockchain company has reached out to the Federal Government of Nigeria to provide assistance in creating a policy framework for cryptocurrency that may help to unleash the potential of blockchain in the continent’s largest economy. This could pave the way for novel avenues for economic progress and innovation.

With expertise in blockchain technology, the Seattle, Washington-based Gluwa is at the forefront of change with experience building the world’s first blockchain-based credit repository, enabling financial institutions to tackle fraud and credit scoring using trustless, on-chain, credit history verification via its Creditcoin network.

Gluwa offers a versatile non-custodial wallet called the Gluwa Wallet, which enables users to invest their USDC in a range of global fintech lending partners through the blockchain. In addition, Gluwa’s venture branch, Gluwa Capital, invests in startups and has pledged $35 million to assist in the advancement of African-owned financial service providers and cryptocurrency exchanges.

“We believe that cryptocurrencies have the potential to transform the financial landscape in Nigeria and across the African continent,” said Gluwa CEO Tae Oh. “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.”

Although Nigeria’s younger population has experienced a surge in cryptocurrency adoption and usage, the Nigerian government remains hesitant to fully accept digital assets due to apprehensions concerning fraud, money laundering, and other illicit activities. Nonetheless, Gluwa is of the opinion that with an appropriate policy structure, digital assets can serve a crucial function in stimulating economic growth and financial inclusion in Nigeria.

“Gluwa is committed to driving innovation and growth in the blockchain industry, and we believe that Nigeria has tremendous potential in this area,” said Tae Oh. “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.”

Proponents of blockchain technology believe digital assets can help address many longstanding challenges facing the country’s financial system, such as high transaction costs, limited access to credit, and a lack of financial inclusion.

“We are pleased to see interest from companies like Gluwa in supporting the growth and development of the blockchain industry in Nigeria,” said Ahmed Gloria Kufeji, a Director at the Nigerian Ministry of Finance. “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.”

Meanwhile, the Nigerian Securities and Exchange Commission (SEC) has already initiated measures to regulate digital assets by releasing guidelines for initial coin offerings (ICOs) and other activities related to cryptocurrencies. Gluwa’s recommendations aim to provide further clarity to the regulatory landscape and thereby foster greater adoption of crypto-assets.

These proposals have garnered support from Tebogo Thobeje, the founder of the Blockchain Africa Society. 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.”

We covered last year after it onboarded $500,000 to its Invest Bond Account to help finance real-world businesses and infrastructure in underprivileged locations that have a hard time accessing funding. Its borderless decentralized financial platform connects mature capital markets to digital-first financial institutions in developing countries.

Founded in 2015, the startup got its name from the first ocean-going ironclad, Gloire. Using blockchain technology, Gluwa is creating a new, reliable, and open alternative with information transparency.