A report detailing the roadmap ahead for the payment systems in Nigeria mentioned various aspects of stablecoins, ICOs, and its CBDC in depth.
The Central Bank of Nigeria has prepared a report that explores the way ahead for the payments infrastructure in the country. Titled “Nigeria Payments System Vision 2025”, the report sprung a surprise for the crypto space as it declared that a regulatory framework would be explored for the likely usage of stablecoins. It accepted the potential popularity of stablecoins as a payment mechanism in the future and admitted to the requirement of a regulatory regime for the same.
The report further delved into Initial Coin Offerings (ICOs) and the lack of regulation in the sector. It mentioned the various use cases of ICOs and stated, “CBN would continue its watching brief on ICOs as well as work with SEC to jointly develop a regulatory framework in the event of adoption of an ICO-based investment solution.” This was on top of its like consideration to establish regulations for ‘Stable Coin Offerings’.
A major chunk of the report was dedicated to its central bank digital currency (CBDC) named ‘eNaira’. The report mentioned the several benefits of CBDCs, including payment efficiency, price stability, and economic development, among many others. It laid out several recommendations for implementing a CBDC in the next 3 to 5 years. Nigeria has been promoting eNaira to reduce cash transactions and establish itself as a hub for crypto. Though usage of the eNaira has been low, the efforts of Nigeria have drawn praise from the crypto industry.