Nigeria bans algorithmic stablecoins, sets reserve rules for issuers

Nigeria's move treats stablecoin issuance as a core payments function rather than a niche crypto activity, putting the central bank directly in the chain of trust for naira-linked value. The ban on algorithmic models narrows the design space for local issuers, while reserve rules raise the operational bar for anyone serving payment flows. With no effective date yet, the near-term question is how existing issuers and their partners adapt before licensing expectations bite — and whether this becomes a template for other African regulators weighing similar oversight.