Crypto-asset surge poses risks to monetary policy – IMF warns

…Says Nigeria received $59bn in crypto inflows, ranks 2nd globally
By Emma Ujah, Abuja Bureau Chief
The International Monetary Fund (IMF) has warned that the rising use of dollar-backed stablecoins in Nigeria could undermine monetary policy effectiveness, financial stability and monetary sovereignty, even though they offer benefits in cross-border payments.
In its Country and Regional Focus report released in Washington, D.C., the Fund noted that sharp depreciation of the naira, high inflation and limited access to foreign exchange in 2023 and 2024 significantly increased demand for dollar-linked digital assets.
Citing Chainalysis’ 2024 Global Crypto Adoption Index, the IMF said N...