The CBN is preparing a framework for cryptocurrency regulation.

According to the Central Bank of Nigeria, a regulatory framework would be developed for the use of cryptocurrencies in the nation.

This information was provided in a paper titled "Nigeria Payments System Vision 2025".

Transactions using cryptocurrencies had previously been prohibited by the banking regulation.

The CBN stated that it will "explore" creating a regulatory framework for the prospective use of "Stablecoins."

The PUNCH was also contacted by economists who criticized the apex bank's consideration of the stable coin as being untimely given the demise of the e-naira.

In the event that an ICO-based investment solution is adopted, the bank continued, "It would also continue to keep a close eye on Initial Coin Offerings and collaborate with the Security Exchange Commission to jointly build a regulatory framework."

A stablecoin is a cryptocurrency whose value is linked to another currency, good, or financial instrument, according to Investopedia. Stablecoins offer a substitute to the most well-known cryptocurrencies' high volatility, including Bitcoin, which has made crypto investments less suitable for everyday transactions.

Recall that the CBN had halted all cryptocurrency-related transactions in the nation, alleging that cryptocurrencies were being used for terrorism and money laundering.

The restriction on such transactions, according to a statement by Osita Nwanisobi, acting director of corporate communications at the Central Bank of Nigeria, won't have any detrimental effects on fintechs.
He declared, "Using cryptocurrencies in Nigeria is a clear violation of the law.

The crucial distinction between a digital currency issued by a central bank and cryptocurrencies must also be emphasized.

As the titles suggest, cryptocurrencies are issued by unidentified, uncontrolled companies, whereas central banks are able to issue digital currencies.

“The question that one may need to ask therefore is, why any entity would disguise its transactions if they were legal.”

Speaking with The PUNCH on Wednesday, an economy and capital market analyst, Rotimi Fakayejo, said the policy, if implemented, would have no significant impact on the economy, noting that it was at the wrong timing.

"We tried e-naira, but it is not working," he stated. CBN is not thinking rationally, in my opinion. We are all aware of how lax the laws in this nation may be.

"The naira is not stable, and there is a shortage of foreign exchange. I fail to see why they would decide to put such a program into effect.

Wole Adeyeye, a capital market and investment analyst, told The PUNCH that before such policies were adopted, appropriate rules needed to be put in place.