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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.
Across emerging markets such as Nigeria, stablecoins already help move money across borders, facilitate trade, and provide access to dollar liquidity for businesses and individuals.
More than 65% of crypto inflows into Nigeria are now denominated in stablecoins, with Tether’s USDT and Circle’s USDC dominating activity, according to a new International Monetary Fund (IMF) report on Nigeria.
For the CBN, the new question it wants to answer is whether stablecoins can be regulated in a way that helps solve some of Nigeria’s most persistent payments and foreign exchange (FX) challenges.
As PSV 2028 attempts to shape its broader ambition to redesign how money moves into, out of, and across Nigeria, stablecoins have emerged as one of the tools the CBN believes could help achieve that objective.
Stablecoins are part of how Nigerians move money
Between July 2024 and June 2025, Nigeria received approximately $92.1 billion in crypto-asset value, with stablecoins driving growth. The country’s numbers are nearly triple that of the next country, South Africa, according to blockchain analytics firm Chainalysis.
In a June 9 report on Nigeria, the International Monetary Fund (IMF) said the country has become the largest destination for stablecoin inflows in Sub-Saharan Africa, accounting for roughly 60% of regional inflows between late 2019 and early 2025.
The rise in stablecoins’ attractiveness can be traced to elevated inflation and naira volatility between 2023 and 2024, according to the IMF.
For households, stablecoins could serve as a cheaper alternative for receiving remittances. Remittances are a crucial part of income for many households, and amount to about $21 billion annually in Nigeria.
By allowing funds to move directly over blockchain networks, stablecoins can reduce reliance on intermediaries that typically charge transfer and foreign exchange fees, helping recipients receive more of the money sent to them.
For freelancers, stablecoins provide access to international payments. For businesses, they increasingly function as a mechanism for treasury management and cross-border settlement. In effect, stablecoins have emerged as an unofficial dollar rail operating alongside the traditional banking system.
To tap into this growing usage, Nigeria’s first regulated stablecoin, cNGN, pegged 1:1 to the naira, was launched by WrappedCBDC, a private company, in early 2025. About ₦2.3 billion cNGN held by around 4,805 wallets was in circulation as of June 12.
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