TechFlow News, June 16: According to The Block, the International Monetary Fund (IMF) stated that Nigeria’s widespread adoption of U.S. dollar–pegged stablecoins is challenging the country’s existing monetary policy and regulatory framework. The IMF noted that the naira’s depreciation, high inflation, and limited access to official foreign exchange have driven local households and small- and medium-sized enterprises (SMEs) to adopt stablecoins for cross-border payments and hedging against exchange-rate risk.
The IMF warned that the growing popularity of stablecoins could exacerbate “digital dollarization,” weaken demand for the domestic currency, impair the transmission efficiency of monetary policy, and increase difficulties in anti-money laundering (AML) and financial regulation. Data show that since 2019, Nigeria has accounted for approximately 60% of stablecoin inflows across sub-Saharan Africa. To address these risks, the IMF recommended strengthening domestic-currency stability, clarifying regulatory rules for stablecoin issuers, enhancing on-chain data monitoring capabilities, and improving local payment infrastructure.
