Nigeria Considering a Regulatory Framework for Stablecoins, Reveals the Latest Central Bank of Nigeria Report

Nigeria is committed to expanding blockchain solutions as it works to improve its payments ecosystem by 2025.

In a new report, Nigeria Payments System Vision 2025, the Central Bank of Nigeria has dedicated 2 recommendations to blockchains and crypto innovations as it charts a payments future for the populous nation.

The report indicates, This is the successor of Nigeria Payments System Vision 2020, the use of liquidity will naturally slow down with the first mobile generation that will be economically active between now and 2025, As a result, the bank's cash policy has increased.

On its 4th recommendation, the vision report states that it will keep track of its ongoing blockchain solutions, such as the e-Naira project, while also keeping an eye on blockchain developments in other countries.

The report says:

“The CBN would keep an active watching brief on blockchain solutions for the Naira while collaborating with relevant stakeholders to identify resources to track and report on potential deployments of blockchain solutions in other countries; engage with other central banks on potential joint ventures to investigate and implement a Central Bank Digital Currency (CBDC) solution.” 

– Nigerian Central Bank.

Nigeria's plans include smart contract technology, Noting that it would oversee solutions in other countries as part of the elaboration of a strategy for its adoption in Nigeria.

“A position paper outlining possible use scenarios, deployment approaches and timelines would be developed in collaboration with industry stakeholders."

The report also says Nigeria would consider the development of a regulatory framework for both stablecoins and ICOs, which is on recommendation 5.

“The CBN would consider the development of a regulatory framework for potential implementation of stablecoins, while continuing its watching brief on Initial Coin Offerings (ICOs) as well as work with Security Exchange Commission (SEC) to jointly develop a regulatory framework in the event of adoption of an ICO-based investment solution.”

The CBN is also reviewing key instances of the use of Big Data in the payments system and for economic analysis as part of its vision for the coming years.

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