{"id":16289,"date":"2023-01-10T09:56:03","date_gmt":"2023-01-10T09:56:03","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/new-nigerian-central-bank-document-discusses-regulation-of-stablecoins-and-icos-bitcoin-news\/"},"modified":"2023-01-10T09:56:03","modified_gmt":"2023-01-10T09:56:03","slug":"new-nigerian-central-bank-document-discusses-regulation-of-stablecoins-and-icos-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/new-nigerian-central-bank-document-discusses-regulation-of-stablecoins-and-icos-bitcoin-news\/","title":{"rendered":"New Nigerian Central Bank Document Discusses Regulation of Stablecoins and ICOs \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to a recently unveiled document, the Nigerian central bank will in the future be open to developing a regulatory framework for potential implementations of stablecoins. The document also discusses the regulation of initial coin offerings (ICOs) and how these can become \u201ca new way to attract foreign direct investment (FDI) and raise capital.\u201d<\/strong><\/p>\n

\u2018A Successful Payment Mechanism\u2019<\/h2>\n

In its recently unveiled payments system document, the Central Bank of Nigeria (CBN) said the bank would be open to developing \u201ca regulatory framework for [the] potential implementations of the stablecoin.\u201d The document claims that such stablecoin implementations are likely \u201care likely to be a successful payment mechanism,\u201d hence there is \u201ca need to develop a regulatory framework for such implementation.\u201d<\/p>\n

Besides mentioning stablecoin implementations, the CBN\u2019s Nigeria Payments System Vision 2025 document<\/a> also discusses the creation of a framework to regulate initial coin offerings (ICOs). While acknowledging the key role that may be played by ICOs, the document however said regulation is needed if investor interest in this form of fundraising is to be revived.<\/p>\n

\u201cThere is little appetite to adopt the current round of ICOs given their lack of regulation. However, given the role of ICOs as an asset class, there is potential for adopting the technology of ICOs as a new approach to fundraising for capital projects (in the wholesale market) or peer-to-peer lending or crowdfunding (for the retail market),\u201d reads the document.<\/p>\n

The document adds that once a properly implemented and supported regulatory framework is in place, ICOs could become \u201ca new way to attract foreign direct investment (FDI) and raise capital.\u201d<\/p>\n

Regulating Initial Coin Offerings<\/h2>\n

While the CBN has in the past discouraged or barred<\/a> financial institutions from facilitating transactions that involve cryptocurrencies, the latest payments system document suggests the central bank\u2019s stance towards privately issued digital currencies has evolved.<\/p>\n

After the CBN directed banks to stop extending services to crypto entities in Feb. 2021, some Nigerian commentators accused the central bank of usurping the powers of the Nigerian Securities and Exchange Commission (NSEC). However, according to the document, which envisions a cashless economy by 2025, the CBN and NSEC will jointly regulate the digital currency space.<\/p>\n

\u201c[The] CBN would have a role in the payment aspect, but SEC would need to provide a regulatory framework since the tokens would be a new asset class,\u201d the document states.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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