Nigerians Shift $59 Billion to Stablecoins for Cross-Border Transfers as IMF Flags Naira Risks
Updated
Updated · Reuters · Jun 16
Nigerians Shift $59 Billion to Stablecoins for Cross-Border Transfers as IMF Flags Naira Risks
3 articles · Updated · Reuters · Jun 16
Summary
$59 billion in crypto inflows reached Nigeria between July 2023 and June 2024, as households and small businesses increasingly used dollar-pegged stablecoins to move money across borders.
The IMF said adoption has accelerated because stablecoins offer near-instant smartphone transfers, cheaper remittances and a store of value outside the volatile naira.
Nigeria accounted for about 60% of stablecoin inflows into sub-Saharan Africa, underscoring how a once-niche crypto use has become a significant payments channel.
Sending $200 to sub-Saharan Africa costs about 9% through conventional remittance routes versus a 6% global average, helping explain the shift away from traditional channels.
The IMF said wider use of dollar-linked tokens could erode demand for the naira, weaken monetary policy transmission and make oversight harder as transactions move to digital wallets.
Is Nigeria's stablecoin boom a lifeline for its people or a threat to its national economy?
Can government digital currencies win the race against the allure of a borderless digital dollar?
Nigeria’s $59 Billion Stablecoin Surge: IMF Warnings, Dollarization Risks, and the Battle for Monetary Control (2023–2024)
Overview
Nigeria has become the leading stablecoin market in sub-Saharan Africa, capturing 60% of regional inflows and recording $59 billion in crypto inflows from July 2023 to June 2024. This surge is driven by households and small businesses using stablecoins to reduce remittance costs, make payments, and protect against inflation and currency shortages. While the IMF recognizes stablecoins can boost financial inclusion, it warns that widespread adoption could weaken the naira and disrupt Nigeria’s monetary policy. The IMF urges Nigeria to balance innovation with strong regulation to maintain financial stability and confidence in the local currency.