CBN sets N15bn capital floor for foreign-currency stablecoin issuers

The Central Bank of Nigeria (CBN) has set a minimum paid-up capital of N15 billion for issuers of foreign-currency-referenced stablecoins operating in Nigeria.

Section 15 of the bank’s regulations for non-security virtual assets requires these issuers to maintain that capital when entering the market and throughout their operations.

Foreign-currency stablecoins may be made available to people in Nigeria only through a Nigerian-incorporated issuer with the appropriate CBN licence and approval for the token. An overseas regulatory approval does not replace those requirements.

Stablecoins are digital tokens designed to maintain a stable value against a reference such as a national currency. The framework distinguishes tokens referencing the naira from those referencing foreign currencies.

The required capital is separate from reserves backing the tokens, customer funds and operational liquidity. The CBN may impose a higher capital requirement based on an issuer’s size, activities or risk profile.

The same framework contains bank-account and identity checks for platform-facilitated peer-to-peer trades, a separate part of the rules.

Existing operators must apply for the appropriate licence or authorisation within 180 calendar days of commencement. Continued access for existing foreign-currency stablecoin arrangements during assessment requires the bank’s express interim permission.

Sources: CBN regulations; TechCabal; Daily Post