Nigeria is one of the first countries in the world to use a digital currency that is issued by the country’s own central bank (CBDC). In addition to this, it states that it is willing to acknowledge the existence of private stablecoins. The Central Bank of Nigeria (CBN) is looking into the possibility of establishing a regulatory framework that would govern the possible applications of stablecoins and initial coin offerings (ICOs). It is aiming for full implementation within the next three to five years.
The most recent strategy paper published by the central bank makes note of the importance of establishing a legal framework for stablecoins. The 83-page report from the Central Bank of Nigeria (CBN) is titled “Nigeria Payments System Vision 2025,” and it discusses the possibility of establishing a regulatory framework for the use of stablecoins.
Additionally, the report addresses the issue of how initial coin offerings (ICOs) should be regulated. It brings to light the fact that there is currently no regulation in the sector, which results in losses for investors. The Central Bank of Nigeria (CBN), on the other hand, believes that initial coin offerings (ICOs) have the potential to become a novel method of financing capital projects, peer-to-peer lending, and crowdfunding.
Nigeria’s economy is one of the largest in Africa, with a nominal GDP of over $450 billion. Because of this, it is very important to take into account the fact that the Central Bank of Nigeria is actively looking into cryptocurrency and blockchain technology.
