The Central Bank of Nigeria (CBN) said it would develop a regulatory framework to recognize stablecoins and initial coin offerings as investment classes.
The central bank said in it “Payment System Vision 2025” As private stablecoins have developed into successful payment mechanisms in the country, they report that their operations need to be regulated.
The regulator added that it will work with relevant authorities to develop a regulatory framework to enable stablecoin offerings.
Additionally, the central bank said it will work with the Nigerian Securities and Exchange Commission (SEC) to regulate Initial Coin Offering (ICO)-based investment solutions.
If properly regulated, ICOs could serve as a new approach for startups to crowdfund and raise money for their projects, according to apex bank. Additionally, ICOs will be recognized as an investment vehicle, allowing the country to boast of foreign direct investment.
CBN says it will continue to support innovations built on distributed ledger technology (DLT) as it believes it has the potential to transform the Nigerian economy. .
Nigeria becomes crypto-friendly
Recent developments in Nigeria show that the government is slowly moving from being tough on crypto investors to advocating pro-crypto measures.
About a year ago, crypto investors in Nigeria were banned from bank accounts after the CBN ordered all accounts suspected of trading cryptocurrencies to be closed.
Nonetheless, Nigerians are not bound by their love of crypto as more than 26% will reportedly own at least one crypto asset in 2022. number one African country leading the adoption of Bitcoin.
Meanwhile, the government-backed CBDC “e-Naira” recorded an adoption rate of 0.5%, which is considered very low for a 14-month-old project.
However, Nigerian lawmaker Babangida Ibrahim has revealed that the SEC is set to recognize cryptocurrencies as an investment class.