IMF Warns That Rapid Penetration of Stablecoins in Nigeria Could Undermine Domestic Monetary Policy Transmission
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 are driving local households and small and medium-sized enterprises (SMEs) to adopt stablecoins for cross-border payments and hedging against exchange rate risk.
