The Africa Stablecoin Network (ASN) has expressed support for the recent remarks by Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), advocating for modernization of cross-border payment systems.
Cardoso, speaking at the Intergovernmental Group of Twenty-Four Technical Groups Meeting, highlighted persistent inefficiencies in international payment corridors, noting that transactions remain slow, expensive and fragmented, particularly for emerging economies.
He pointed to high remittance costs, prolonged settlement timelines and compliance barriers that limit participation of micro, small and medium enterprises (MSMEs) in global trade.
In response, ASN stated that it shares the apex bank’s objective of building faster, more affordable and inclusive financial infrastructure.
The group emphasized that stablecoin technology and blockchain-based settlement systems could help address structural payment bottlenecks if supported by clear and harmonised regulatory frameworks.
According to ASN President Nathaniel Luz, digital assets such as stablecoins serve practical economic functions across African markets by enabling near-instant value transfer and reducing transaction costs.
The group noted that cross-border payments that currently take several days could be executed within minutes through distributed ledger systems.
ASN further argued that remittance fees, which often range between five and seven percent under traditional channels, could decline significantly under regulated digital settlement models. Such efficiency gains, it said, would strengthen cash flow management for businesses and enhance participation in intra-African trade.
The network acknowledged concerns raised by monetary authorities regarding currency substitution risks, foreign exchange volatility and financial stability implications.
However, it maintained that these risks can be managed through a structured supervisory framework rather than postponing technological adoption.
ASN referenced the Investment and Securities Act 2025, which grants regulatory authority over digital assets to the Securities and Exchange Commission Nigeria (SEC), as a step toward improving legal clarity within the ecosystem. It also highlighted the SEC’s regulatory sandbox as an avenue for innovation under oversight.
The group noted that the CBN’s Payments System Vision 2025 provides a policy foundation for inter-agency collaboration between regulators in shaping a controlled and transparent digital asset environment.
Addressing concerns about potential pressure on the naira, ASN stated that regulatory clarity could enhance monitoring of value flows and integrate informal digital transactions into the formal financial system.
The endorsement signals growing engagement between digital asset stakeholders and policymakers as Nigeria evaluates pathways to modernize its payment architecture while safeguarding financial stability.
