The Central Bank of Nigeria mentioned stablecoins at least 68 times in its newly released Payments System Vision 2028 document. For a regulator that once directed banks to close accounts linked to crypto transactions, that number says a lot.
Back in February 2021, the CBN told financial institutions to cut ties with crypto-related accounts entirely. The reasoning at the time centered on risks to financial stability, money laundering controls, and consumer protection. Five years later, the same institution is now proposing a framework that would bring stablecoins into Nigeria's regulated payments infrastructure.
A stablecoin is a digital currency pegged to a stable asset, usually a fiat currency, designed to avoid the wild price swings associated with crypto. Across emerging markets, stablecoins are already doing real work: moving money across borders, supporting trade, and giving businesses and individuals access to dollar liquidity.
Nigeria is deep in this already. According to a new IMF report, more than 65% of crypto inflows into Nigeria are now denominated in stablecoins, with Tether's USDT and Circle's USDC leading the activity.
The CBN's shift is not just philosophical. The central bank is now asking a very practical question: can stablecoins be regulated in a way that actually helps solve Nigeria's long-standing payments and foreign exchange challenges? The answer it lands on could reshape how millions of Nigerians send and receive money.
Originally published by TechCabal.