In the future, the Nigerian central bank would be open to creating a regulatory framework for potential implementations of stablecoins, according to a recently released document.
The regulation of initial coin offerings (ICOs) and how they can develop into “a new approach to attract foreign direct investment (FDI) and raise capital” are also covered in the text.
The Central Bank of Nigeria (CBN) stated in a document about its payments system that it would be open to creating “a regulatory framework for [the] potential implementations of the stablecoin.” According to the document, such stablecoin implementations “are likely to be a successful payment system,” hence “a regulatory framework for such implementation is needed.”
. “The CBN’s Nigeria Payments System Vision 2025 document highlights the development of a framework to govern initial coin offers in addition to discussing stablecoin implementations (ICOs).
The technology of ICOs may be adopted as a novel method of capital project financing (in the wholesale market), peer-to-peer lending, or crowdfunding (for the retail market), according to the document, given the role of ICOs as an asset class.
The letter continues by saying that ICOs might develop into “a new approach to attract foreign direct investment (FDI) and raise cash” once a properly established and supported legal framework is in place.
The memo notes that although the SEC would need to develop a regulatory framework because tokens would be a new asset class, “[the] CBN would have a role in the payment component.”