Nigeria is adopting a stricter approach to stablecoin regulation.
On November 5, its central bank introduced new rules banning algorithmic stablecoins that depend primarily on code and supply adjustments to maintain their peg.
Under the new framework, issuers must maintain 100% eligible reserves, hold an additional 2% buffer, and guarantee redemption at face value.
However, this does not mean all stablecoins are prohibited. Fully reserve-backed stablecoins can still operate with the proper license.
The bigger question is: Will more countries follow Nigeria’s lead and require stablecoins to be backed by real assets?
#Stablecoin #Crypto #Nigeria #Regulation #Blockchain
On November 5, its central bank introduced new rules banning algorithmic stablecoins that depend primarily on code and supply adjustments to maintain their peg.
Under the new framework, issuers must maintain 100% eligible reserves, hold an additional 2% buffer, and guarantee redemption at face value.
However, this does not mean all stablecoins are prohibited. Fully reserve-backed stablecoins can still operate with the proper license.
The bigger question is: Will more countries follow Nigeria’s lead and require stablecoins to be backed by real assets?
#Stablecoin #Crypto #Nigeria #Regulation #Blockchain
