IMF Sounds Alarm on Nigeria's Stablecoin Boom
The International Monetary Fund (IMF) has issued a warning about Nigeria's growing use of stablecoins, citing risks to monetary policy and regulatory oversight.
Nigeria received $59 billion in crypto-asset inflows between July 2023 and June 2024, with the country accounting for 60% of all stablecoin inflows across sub-Saharan Africa since 2019.
The IMF notes that conventional remittance services charge Nigerian senders an average of 9% of the transaction value to move $200 abroad, compared to a global average of 6%. Stablecoins have offered a faster and cheaper alternative.
The report identifies three specific risks associated with stablecoin adoption: reduced monetary policy effectiveness, weakened regulatory oversight, and greater exposure to illicit finance.