The IMF report states that Nigeria's US dollar stablecoins are experiencing rapid growth in scale and are "testing" the boundaries of existing currency and regulatory frameworks. Nigeria has accounted for about 60% of stablecoin inflows into Sub-Saharan Africa since 2019. The IMF indicates that stablecoins are widely used by households and small businesses due to faster cross-border remittances, lower costs, and the devaluation of the naira, inflation, and limited access to foreign exchange. However, the widespread adoption of US dollar stablecoins could lead to "digital dollarization," weakening demand for the local currency and the transmission of monetary policy, while increasing financial integrity risks such as money laundering. The IMF believes that simply suppressing stablecoin use has limited effectiveness and that, while allowing innovation, there should be strengthened regulation of issuers, on-chain data monitoring, and local payment infrastructure.