Nigeria’s CBN Monitors Stablecoin Activity With New Approach

The Central Bank of Nigeria (CBN) is taking direct oversight of digital currency transactions to the next level. Through its Payments System Vision 2028 (PSV 2028), the regulator will run observer nodes on blockchain networks for approved stablecoins, gaining real-time visibility into these financial flows.

This approach allows the CBN to independently verify transaction data rather than relying solely on issuer reports—a critical step as digital currencies become increasingly integrated into Nigeria’s payment ecosystem. Stablecoins, which maintain a 1:1 peg to fiat currencies like the US dollar or naira, are used by Nigerians for remittances and hedging against currency volatility.

The CBN’s move aligns with broader regulatory trends across Africa, where authorities seek to balance innovation with financial stability. Kenya’s Capital Markets Authority recently issued a tender for blockchain analytics providers, signaling similar intent to enhance oversight of digital asset activity.

Growing Adoption Drives Regulatory Response

Stablecoins and other digital currencies facilitated an estimated $205 billion in transaction flows across Sub-Saharan Africa between July 2024 and June 2025—demonstrating their growing importance in regional payments. Nigeria leads the way with $48.2 million in daily stablecoin P2P transfers on centralized exchanges, according to Hashed Emergent.

The CBN’s regulatory sandbox now includes stablecoin issuers, requiring them to meet reserve requirements and build transparency features into their systems—addressing concerns about liquidity risk and consumer protection.