Why is the International Monetary Fund concerned about stablecoin adoption in Nigeria?

The International Monetary Fund reported that Nigeria received US$59 billion in crypto-asset inflows between July 2023 and June 2024, and warned that growing stablecoin use could weaken monetary policy and make financial monitoring more difficult. The IMF said widespread use of dollar-linked stablecoins may contribute to digital dollarisation.

What are the main benefits of stablecoins highlighted by the International Monetary Fund?

The International Monetary Fund said stablecoins can improve financial inclusion and lower the cost of cross-border payments in Nigeria. The IMF noted that stablecoins have become a meaningful payments channel as the country recorded US$59 billion in crypto inflows over the 12-month period.

How is stablecoin adoption affecting Nigeria's position in Africa's crypto market?

The International Monetary Fund reported that Nigeria accounted for 60% of all stablecoin inflows into sub-Saharan Africa since 2019. The IMF said this reflects the significant role Nigeria plays in regional crypto and digital payments activity.

What does the International Monetary Fund mean by digital dollarisation?

The International Monetary Fund said digital dollarisation occurs when people increasingly use dollar-pegged stablecoins instead of local currency for transactions and savings. The IMF warned that this trend could reduce the effectiveness of Nigeria's domestic monetary policy.

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IMF flags Nigeria stablecoin inflows at $59B

Q: What does the International Monetary Fund recommend for managing stablecoin risks in Nigeria?

The International Monetary Fund recommended stronger oversight, better reporting of naira-to-stablecoin conversions, and upgrades to payment infrastructure. The IMF said these measures could help manage risks while allowing innovation in digital financial services.

Written by Brie CarterPublished Jun 17, 2026, 3:15 AM

The International Monetary Fund said Nigeria received US$59 billion in crypto inflows between July 2023 and June 2024, with stablecoin adoption reaching a notable scale.
The report warned that growing use of dollar-pegged stablecoins could weaken monetary policy and increase financial integrity risks.
The IMF urged policymakers to manage risks through oversight and infrastructure upgrades rather than relying solely on suppression efforts.

The International Monetary Fund reported that Nigeria received US$59 billion in crypto-asset inflows between July 2023 and June 2024, highlighting the growing role of stablecoins in cross-border payments and financial activity.

The report noted that Nigeria has accounted for 60% of stablecoin inflows into sub-Saharan Africa since 2019, underscoring the scale of adoption compared with other countries in the region.

“Attempts to suppress stablecoin use are likely to be only partly effective,” said International Monetary Fund researchers.

The IMF said stablecoins provide benefits including financial inclusion and lower-cost remittances, but warned that widespread use of dollar-linked assets could contribute to a digital form of dollarisation and make transaction monitoring more difficult.

The organisation recommended stronger oversight, improved reporting on naira-to-stablecoin conversions and upgrades to payment infrastructure, while stating that innovation and risk management should progress together.

The IMF has repeatedly raised concerns about stablecoins in recent years, arguing that they may reduce central bank control over monetary policy and increase vulnerabilities during periods of financial stress.

Last week the IMF also called for close monitoring of crypto adoption in Nepal, citing risks related to capital control circumvention and large-scale deposit outflows.