IMF Says Nigeria’s Growing Use of Dollar-Pegged Stablecoins Challenges Policy and Regulation

The International Monetary Fund said Nigeria’s widespread adoption of U.S. dollar-pegged stablecoins is creating challenges for the country’s existing monetary policy and regulatory framework. According to ChainCatcher, the IMF attributed the shift to a weakening naira, high inflation, and limited access to official foreign exchange. The IMF said local households and small and medium-sized businesses are increasingly using stablecoins for cross-border payments and to hedge exchange-rate risk.