IMF's report is quite straightforward; suppression is useless, and we need to learn to find a balance in on-chain regulation.

Crypto World News reports that the IMF says the adoption of Nigeria’s US dollar stablecoins is rising rapidly, “testing” the boundaries of existing monetary and regulatory frameworks. Since 2019, Nigeria has accounted for about 60% of stablecoin inflows in Sub-Saharan Africa. The IMF states that stablecoins are widely used by households and small businesses because they enable faster cross-border remittances and lower costs, as well as because the Naira’s depreciation, inflation, and limited access to foreign exchange. However, the growing popularity of US dollar stablecoins may 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 the use of stablecoins is of limited effectiveness; instead, it recommends strengthening issuer regulation, on-chain data monitoring, and local payment infrastructure while allowing innovation.