How stablecoins became part of Nigeria's central bank's plan for payments

As I scrolled through the Central Bank of Nigeria's (CBN) Payments System Vision 2028 (PSV 2028), a document that promises to revolutionize the country's payments infrastructure, I couldn't help but notice a peculiar mention of stablecoins. At least 68 times, in fact. This is quite a departure from the CBN's earlier stance on cryptocurrencies, which was to keep banks at arm's length from these digital assets.

Fast forward to 2021, when the CBN instructed banks to close accounts associated with crypto transactions. The regulator's reasoning then was that cryptocurrencies posed risks to financial stability, money laundering controls, and consumer protection. Yet, five years later, the CBN is proposing an enabling framework for stablecoins to become part of Nigeria's regulated payments infrastructure. It's a shift as remarkable as it is intriguing.

Stablecoins are digital currencies that are pegged to a stable asset, such as a fiat currency, to minimize volatility. They are used for payments and settlements, especially in cross-border transactions. In Nigeria, these digital currencies have gained popularity, with more than 65% of crypto inflows now denominated in stablecoins. According to a recent International Monetary Fund (IMF) report, Tether's USDT and Circle's USDC dominate activity in Nigeria.

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 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. For households, stablecoins have become a lifeline, providing access to dollar liquidity for businesses and individuals. As the CBN seeks to regulate stablecoins, the question remains: can these digital currencies be harnessed to solve some of Nigeria's most persistent payments and foreign exchange (FX) challenges?

As the CBN attempts to redesign how money moves into, out of, and across Nigeria, stablecoins have emerged as one of the tools the regulator believes could help achieve that objective. The enabling framework proposed for stablecoins is a significant departure from the CBN's earlier stance on cryptocurrencies.## Key Facts:

• The CBN mentioned stablecoin(s) at least 68 times in its PSV 2028.
• More than 65% of crypto inflows into Nigeria are now denominated in stablecoins.
• Nigeria received approximately $92.1 billion in crypto-asset value between July 2024 and June 2025, with stablecoins driving growth.
• Nigeria has become the largest destination for stablecoin inflows in Sub-Saharan Africa.

In a country where financial inclusion remains a pressing issue, the CBN's proposal to regulate stablecoins is a step in the right direction. However, it's crucial to ensure that this new framework prioritizes consumer protection and mitigates the risks associated with these digital currencies. As Nigeria continues to navigate the complexities of digital payments, one thing is clear: the future of money is digital, and stablecoins are here to stay.