The Central Bank of Nigeria (CBN) have announced plans to come up with a regulatory framework for the use of cryptocurrencies in the country.
The CBN, which had earlier placed a ban on cryptocurrency related transactions via the bank, revealed in a study titled “Nigeria Payments System Vision 2025”.
Speaking on the regulatory framework, the apex bank said: “The CBN would consider the development of a regulatory framework for potential implementation of ‘Stablecoins.
“It would also continue its watching brief on Initial Coin Offerings as well as work with Security Exchange Commission to jointly develop a regulatory framework in the event of adoption of an ICO-based investment solution.”
The most well-known cryptocurrencies, including Bitcoin, have high volatility, making them less suitable for everyday transactions. Stablecoins, according to Investopedia, are digital currencies whose value is pegged, or tied, to that of another currency, goods, or financial instrument. They offer an alternative to high volatility by offering a stable alternative.
