Nigeria’s CBN Sets ₦10B–₦15B Stablecoin Capital Rules, Bans Algorithmic Tokens: 7 outlets compared - NewsCord

Nigeria's central bank has introduced capital requirements for stablecoin issuers, setting thresholds of between ₦10 billion and ₦15 billion, and has moved to prohibit algorithmic stablecoins. The framework draws a clear line between tokens backed by reserve assets and those that rely on code and market incentives to hold their peg. By imposing a substantial capital floor, the CBN is effectively raising the barrier to entry, favoring well-capitalized institutions over smaller or experimental issuers.

The ban on algorithmic models reflects a broader regulatory caution that followed high-profile collapses in which such tokens lost their pegs. Requiring issuers to hold real capital and, implicitly, reserves shifts the risk burden onto the firms rather than users. For the market, this signals that Nigeria intends to supervise naira-referenced digital assets within a formal, bank-like perimeter rather than leave the space to unregulated experimentation.

What to watch: the detailed licensing process, how reserve assets must be held and disclosed, and whether the rules extend to foreign-issued stablecoins used locally. The capital size may also shape consolidation, with only larger players able to comply.