The Central Bank of Nigeria (CBN) plans to create a regulatory framework for private stablecoins in the country and legal rules to regulate initial coin offerings (ICO).
The Nigeria Payments System Vision 2025 report, released by the Central Bank of Nigeria, suggests the necessity of a regulatory framework for stablecoins. The CBN believes that private stablecoins could be a “successful payment mechanism” in the future.
The report also highlights the lack of a legal framework for ICOs, which, according to CBN analysts, leads to losses and is detrimental to financial stability. That’s especially true after the recent news that the Nigerian government is considering partially lifting its ban on digital assets in the country.
The Central Bank of Nigeria insists on developing a regulatory framework for ICOs that would allow private companies to legally raise investments for their crypto projects. For example, legalizing ICOs in the country would increase the number of peer-to-peer lending and crowdfunding projects.
However, despite the need to develop regulatory solutions for stablecoins and ICOs, the Nigerian government is still focused on improving and further implementing a central bank digital currency (eNaira). According to the report, the CBDC is the only “enabler for transformation” in the national economy. The CBN analysts believe that the eNaira project will be finalized within the next three to five years.
Recall that last August, the CBN expanded the technical capabilities of the eNaira, seeking to attract new users. Thus, the state digital currency can now be used to pay for goods and services. To learn about the regulation of the cryptocurrency market in Nigeria, read the special article by CP Media.
