As one of the world’s first adopters of its own central bank digital currency (CBDC), Nigeria declares its readiness to accept the existence of private stablecoins as well. The need to create a legal framework for stablecoins is marked in the latest central bank strategy document.

Published under the title “Nigeria Payments System Vision 2025”, the 83-page report by the Central Bank of Nigeria (CBN) considers the development of a regulatory framework for the possible implementation of a stablecoin. According to the document, it is necessary to develop a framework, since stablecoins are likely to become a successful payment mechanism in the country.

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The report also pays attention to the regulation of initial coin offerings (ICOs). The current lack of regulation in the area stands out, causing losses for investors. However, CBN sees potential to embrace ICOs as a new approach to raising funds for capital projects, peer-to-peer lending, and crowdfunding. Therefore, a regulatory framework “in case of adoption of an ICO-based investment solution” is also needed.

Related: Nigeria Prepares to Pass Bill Recognizing Bitcoin and Cryptocurrencies

However, the stablecoin and ICO segment of the report is much smaller than the one dedicated to the Nigerian CBDC, eNaira. The Central Bank considers it a potential “facilitator of transformation” in the national economy. He hopes to achieve a final implementation of the coin in 3-5 years.

In December 2022, Nigeria reduced the amount of cash that individuals and businesses can withdraw to $225 and $1,125 per week, respectively, in an attempt to push its “Cashless Nigeria” policy and increase the use of eNaira.

Adoption rates for a CBDC have been low since its launch in 2021. As Cointelegraph reported, the CBN has struggled to convince its citizens to use the digital currency, with less than 0.5% of the population reporting using eNaira. Until October 1st. 25 of 2022, one year since its release.