CBN plans real-time stablecoin monitoring via blockchain observer nodes under PSV 2028

The Central Bank of Nigeria unveiled its Payments System Vision 2028 on June 1, 2026, proposing to run observer nodes on blockchain networks for approved stablecoins to gain direct, real-time visibility into transactions without relying on issuer reports. This aims to bring stablecoins into Nigeria's regulated payments system while maintaining oversight of money movement, addressing how Nigerians use these digital currencies for remittances and as a hedge against naira volatility—noted as $48.2 million in daily peer-to-peer transfer volume on centralized exchanges in Sub-Saharan Africa during 2025 per Hashed Emergent.

Under PSV 2028, the CBN plans to license fiat-backed stablecoins requiring issuers to hold reserves fully domiciled in Nigeria with approved custodians, and has opened a second cohort of its regulatory sandbox including stablecoin issuers. To enable monitoring, licensed issuers would need to build four technical features into their smart contracts: transparency hooks for mint/burn/redemption events, regulator access addresses, cryptographically signed reserve proofs from custodians, and immutable source code requiring CBN re-certification for changes. The CBN is evaluating whether to build this "RegTech Node" infrastructure internally or outsource to managed services providers, while acknowledging challenges like stablecoins operating across multiple blockchains (e.g., Ethereum, Tron) and the inability of observer nodes to verify off-chain reserve balances or wallet identities without KYC/KYB data from custodial services.

While observer nodes would let the CBN compare issuer-reported activity with actual blockchain movements—spotting anomalies like sudden supply expansion—the regulator still faces decisions on qualifying blockchains, infrastructure costs, and how to handle wrapped tokens. For Nigerians using stablecoins, will increased CBN oversight mean safer remittance options through regulated channels, or restrict access to preferred networks as compliance costs rise for issuers?

SOURCE: https://techcabal.com/2026/08/21/nigerias-central-bank-wants-to-monitor-stablecoins/