A new International Monetary Fund (IMF) report highlights the 'striking' scale of stablecoin adoption in Nigeria, noting that the country received $59 billion in crypto inflows from July 2023 to June 2024 and accounts for 60% of sub-Saharan Africa's stablecoin inflows since 2019. While acknowledging benefits such as financial inclusion and cheaper cross-border payments, the IMF warns that stablecoins pose risks including 'digital dollarization,' which weakens domestic monetary policy, and illicit finance due to anonymity and lack of traditional monitoring. The report urges a pragmatic approach, as suppression efforts would be 'only partly effective,' and suggests strengthening oversight, using blockchain analytics, and upgrading payment infrastructure to reduce reliance on unregulated channels.

Key facts

• Nigeria received $59 billion in crypto inflows from July 2023 to June 2024.
• Nigeria accounts for 60% of stablecoin inflows in sub-Saharan Africa since 2019.
• IMF warns of 'digital dollarization' weakening monetary policy.
• Anonymity of stablecoins raises illicit finance risks.
• Report urges pragmatic regulation, not suppression.
• Recommendations include blockchain analytics and payment infrastructure upgrades.