Africa Stablecoin Network Backs CBN Calls for Payment Modernization

The Africa Stablecoin Network (ASN) has formally declared its support for Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) regarding the urgent need to modernize cross-border payment systems.

In a statement released on Tuesday, the network urged Nigerian regulators to adopt a coordinated framework that leverages stablecoin technology to address the inefficiencies currently plaguing international transactions.

This advocacy follows Governor Cardoso’s recent remarks at the Intergovernmental Group of Twenty-Four (G-24) Technical Groups Meeting, where he criticized the global financial architecture for being “too slow, too costly, and too fragmented,” particularly for developing nations.

Governor Cardoso highlighted that global remittance corridors frequently impose costs exceeding 6.0 percent, with settlement lags stretching across several days.

These barriers, compounded by heavy compliance burdens, effectively exclude Micro, Small, and Medium Enterprises (MSMEs) from global trade opportunities.

In response, the ASN argued that the integration of digital payment infrastructure is no longer a matter of financial speculation but a fundamental economic necessity for the continent.

Advertisement

The network posits that stablecoins—digital assets pegged to a stable reserve like the U.S. dollar—could serve as a critical bridge to financial inclusion and economic efficiency.

Nathaniel Luz, President of the Africa Stablecoin Network, emphasized that the regional context for digital assets differs significantly from Western markets. “While stablecoins are a luxury for the West, they are a lifeline for Africa,” Luz stated.

He noted that for the African continent, the primary utility of these assets lies in solving tangible payment and trade constraints rather than speculative investment.

According to the ASN, traditional cross-border transactions that currently take between two and five days to settle could be completed within minutes using blockchain-based infrastructure.

Furthermore, the network projected that remittance costs could plummet from the current 5 to 7 percent to below 1 percent under a decentralized settlement system.

These efficiency gains are expected to have a transformative impact on Nigeria’s MSME sector. By accelerating payments to international suppliers and improving immediate cash flow, stablecoin adoption could facilitate broader participation in intra-African trade, particularly under the African Continental Free Trade Area (AfCFTA) agreement.

Advertisement

The ASN noted that the current lag in traditional banking systems acts as a hidden tax on Nigerian businesses, reducing their competitiveness in the global market.

While the CBN has historically expressed concerns regarding currency substitution, foreign exchange volatility, and the potential erosion of monetary sovereignty, the ASN maintains that these risks are manageable.

The group argued that a properly designed regulatory framework is a more effective tool than the delay of technology adoption.

They pointed to the Investment and Securities Act 2025 as a landmark piece of legislation that empowers the Securities and Exchange Commission (SEC) to regulate digital assets, providing the necessary legal clarity to protect the domestic market.

Dr. Emomotimi Agama, Director-General of the SEC, has previously indicated that Nigeria is open to the stablecoin business, provided it operates on terms that protect local markets and empower citizens.

The ASN highlighted that the SEC’s regulatory sandbox is already attracting significant interest from both local and international fintech start-ups.

Advertisement

This willingness to experiment within a controlled environment aligns with the CBN’s own “Payments System Vision 2025,” which provides a strategic pathway for incorporating emerging technologies into the formal financial ecosystem.

Addressing the specific fear that stablecoins might undermine the naira, Luz argued that clear regulation would actually bring more economic activity into the formal system.

He explained that a transparent regulatory framework allows the government to monitor value flows that currently occur in unregulated, “shadow” channels. “The real risk to monetary sovereignty lies in being left behind while others shape the future of money,” Luz added, suggesting that proactive regulation ensures the state remains the primary arbiter of financial activity.

To achieve this, the network is calling for a unified national strategy that aligns the efforts of the SEC, CBN, the Nigerian Financial Intelligence Unit (NFIU), and the Nigeria Data Protection Commission (NDPC).

This cross-agency coordination is seen as vital to ensuring that the pace of innovation does not outstrip the government’s ability to provide oversight. The ASN maintains that the goal of such a strategy should be to turn current payment challenges into a long-term economic advantage for the federation.

As Nigeria continues to refine its digital asset policies, the dialogue between the central bank and private sector innovators remains critical.

The ASN concluded that the way forward involves coordination and forward-thinking regulation rather than hesitation. By establishing a harmonized framework, the network believes Nigeria can set a continental standard for how digital currencies can be harnessed to support macroeconomic stability and facilitate seamless cross-border commerce.