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New Nigerian Central Bank Document Discusses Regulation of Stablecoins and ICOs

January 10, 2023


‘A Successful Payment Mechanism’

In its recently unveiled payments system document, the Central Bank of Nigeria (CBN) said the bank would be open to developing “a regulatory framework for [the] potential implementations of the stablecoin.” The document claims that such stablecoin implementations are likely “are likely to be a successful payment mechanism,” hence there is “a need to develop a regulatory framework for such implementation.”

Besides mentioning stablecoin implementations, the CBN’s Nigeria Payments System Vision 2025 document also discusses the creation of a framework to regulate initial coin offerings (ICOs). While acknowledging the key role that may be played by ICOs, the document however said regulation is needed if investor interest in this form of fundraising is to be revived.