IMF: money can be laundered through a stablecoin in Nigeria

The analysts have listed the main threats to cybersecurity and risks in conducting cross-border payments

25.02.2022 - 08:15

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What’s new? The International Monetary Fund (IMF) has published a document listing the main risks of the introduction and adoption of the digital naira, Nigeria’s national stablecoin. According to analysts, CBDC can be used for money laundering and terrorist financing.

Link to the full version of the report

What is known about the digital naira? ENaira was launched in October 2021. The Central Bank of Nigeria believes that the new instrument will “make financial transactions easier and smoother for all segments of society.” However, as early as November, the IMF announced the high risks of using the asset. These include threats to monetary policy, cybersecurity, operational resilience, as well as financial integrity and stability of the state.

As for the new IMF document, the analysts believe that the authorities should first address the shortcomings of AML/CFT pricks. In addition, the IMF emphasizes the risks of using digital naira for cross-border payments. Note that around half a million Nigerian citizens were using the wallet at the end of 2021.

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