The International Monetary Fund (IMF) in an analysis contained in its latest Article IV consultation report on Nigeria, says the country accounts for about 60 percent of stablecoin inflows into sub-Saharan Africa, highlighting the country’s growing role in the adoption of digital assets for cross-border payments.
IMF said in the reports that households and small businesses in the country are increasingly turning to stablecoins — crypto assets pegged to the US dollar — to send and receive money across borders.
The fund said Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024, ranking second globally in Chainalysis’ 2024 Global Crypto Adoption Index and sixth in the 2025 ranking.
“Stablecoins now form a key bridge between crypto markets and the traditional financial system,” the IMF said.
According to the report, the attraction of stablecoins lies in their ability to facilitate cross-border payments and remittances at lower costs and faster speeds than traditional channels.
“The appeal is straightforward. Stablecoins allow users with a smartphone and internet access to receive remittances or make cross-border payments in minutes, often at lower cost than traditional channels,” the fund said.
“For households and small firms with limited access to formal banking services, this is a practical alternative.”
IMF said the trend has been reinforced by domestic economic conditions, particularly the sharp depreciation of the naira, elevated inflation and constrained access to foreign exchange in 2023 and 2024.
According to the report, stablecoins became increasingly attractive as a store of value and a payment tool for businesses settling obligations with overseas suppliers.
“Stablecoins offered both a hedge against currency risk and a tool for paying overseas suppliers,” the IMF said.
The institution also noted that after the Central Bank of Nigeria (CBN) restricted banks from servicing cryptocurrency exchanges in February 2021, a significant portion of crypto activity migrated to peer-to-peer platforms and other less regulated channels.
While acknowledging the benefits of stablecoin adoption, the IMF warned that the development could pose challenges for monetary policy and financial regulation if left unchecked.
“One is monetary sovereignty. As stablecoins are typically denominated in US dollars, widespread use can resemble a digital form of dollarization,” the report said.
“By reducing demand for the local currency, it could weaken the transmission of domestic monetary policy.”
The fund also raised concerns about financial integrity risks, saying transactions that previously flowed through regulated financial institutions are increasingly moving through digital wallets and crypto exchanges.
“Monitoring systems designed for traditional intermediaries may not capture these transactions effectively,” the IMF said.
“The speed and anonymity of some platforms can also increase risks of illicit finance, including money laundering.”
To address the risks, the IMF urged Nigerian authorities to focus on maintaining macroeconomic stability, strengthening regulatory oversight and improving visibility into stablecoin transactions.
“The most effective defense against digital dollarization is a stable and credible domestic currency,” the fund said.
“Nigeria’s recent macroeconomic reforms and tighter monetary policy have helped restore confidence in the naira. Sustaining this progress will be critical.”
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