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The Central Bank of Nigeria (CBN) mentioned stablecoin(s) at least 68 times in its newly released Payments System Vision 2028 (PSV 2028). For a regulator that once wanted banks nowhere near cryptocurrency businesses, this is a remarkable shift.
A stablecoin is a digital currency pegged to a stable asset, such as a fiat currency, to minimise volatility, used for payments and settlements, especially in cross-border transactions
In February 2021, the CBN instructed banks and other financial institutions to close accounts associated with crypto transactions. At the time, the regulator argued that cryptocurrencies posed risks to financial stability, money laundering controls, and consumer protection.
Five years later, the same institution is proposing an enabling framework for stablecoins to become part of Nigeria’s regulated payments infrastructure.
