.
The Central Bank of Nigeria (CBN) is exploring a system that would give regulators near real-time visibility into stablecoin transactions, signalling a major shift in how the country intends to monitor dollar-linked digital assets as their use expands.
The proposal is part of the CBN’s broader Payments System Vision 2028, which increasingly recognises stablecoins as part of Nigeria’s evolving payments landscape. The apex bank’s interest reflects the rapid growth of stablecoin activity in the country, particularly for cross-border transfers and dollar-denominated transactions.
Observer Nodes at the Centre of the Plan
The proposed monitoring framework would rely on what are described as observer nodes.
These nodes would allow regulators to observe transactions taking place on supported blockchain networks without necessarily controlling the networks themselves.
The idea is to give the CBN greater visibility into transaction flows, allowing it to monitor activity, identify potential risks and better understand how stablecoins are being used within Nigeria’s financial system.
The approach is particularly significant because blockchain transactions are recorded publicly on many networks, but identifying the people or businesses behind individual wallet addresses can still be difficult.
Stablecoins Are Becoming More Important in Nigeria
Stablecoins are digital assets designed to maintain a relatively stable value against another asset, most commonly the US dollar.
Their popularity in Nigeria has grown alongside demand for dollar-denominated savings, cross-border payments and alternative channels for moving money internationally.
The International Monetary Fund (IMF) estimates that Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024. The country also accounted for roughly 60% of stablecoin inflows into sub-Saharan Africa since 2019, highlighting its importance to the continent’s stablecoin market.
CBN’s Position Is Changing
The proposed monitoring system also reflects a broader evolution in the CBN’s approach to digital assets.
Stablecoins appeared repeatedly in the CBN’s Payments System Vision 2028, with the central bank discussing them in the context of payments, remittances and dollar liquidity.
This represents a notable change from the more restrictive approach the Nigerian banking system previously took towards cryptocurrency-related activity.
The shift does not mean that the CBN is giving stablecoins unrestricted approval. Rather, the regulator appears increasingly focused on understanding and supervising an activity that is already taking place at considerable scale.
Why Regulators Want Greater Visibility
Stablecoins can make cross-border transactions faster and potentially cheaper, but their growing use also creates regulatory challenges.
Authorities need to understand transaction flows to address concerns around money laundering, illicit finance, consumer protection, monetary policy and financial stability.
For the CBN, monitoring stablecoins could also provide a clearer picture of how dollar-linked digital assets interact with Nigeria’s traditional financial system.
The IMF has similarly warned that rapid stablecoin adoption is testing the limits of existing monetary and regulatory frameworks, while arguing that regulators should allow useful innovation while managing associated risks.
The Challenge Is Identifying Users
Having visibility into blockchain transactions does not automatically provide regulators with complete information about who is conducting them.
A blockchain can show that funds moved from one wallet to another, but determining the identities behind those addresses may require information from exchanges, wallet providers or other regulated entities.
This means observer nodes could become one component of a broader supervisory system rather than a complete solution on their own.
The effectiveness of the approach will ultimately depend on the networks covered, the information available to regulators and how blockchain data is connected with existing compliance systems.
Nigeria Wants to Balance Innovation and Control
The proposed monitoring framework comes as Nigerian startups and financial companies increasingly build products around stablecoins.
According to recent industry data, Nigerian Web3 startups raised about $43 million in 2025, with funding concentrated in businesses linked to stablecoin-driven financial services.
This growing ecosystem creates a balancing act for regulators: excessive restrictions could discourage innovation, while limited oversight could leave gaps in financial supervision.
The CBN’s approach suggests it is increasingly choosing visibility and monitoring over simply attempting to keep stablecoins outside the formal financial system.
A New Phase for Nigeria’s Digital Payments Market
The move to explore real-time stablecoin monitoring signals that digital assets are becoming too significant to remain at the edges of Nigeria’s payments conversation.
For regulators, the immediate priority is gaining better visibility into how these assets move through the economy. For fintechs and digital-asset businesses, the development could mean greater regulatory scrutiny but also a clearer framework for operating within the formal financial system.
As Nigeria prepares its payments infrastructure for 2028 and beyond, the stablecoin question is no longer simply whether Nigerians will use these assets. It is increasingly about how regulators can monitor their growing use without stifling the innovation built around them.
