Africa Stablecoin Network backs CBN on payment reform

The Africa Stablecoin Network (ASN) has supported the Central Bank of Nigeria’s push to modernise cross-border payments, urging regulators to adopt a unified national framework that would enable the safe use of stablecoins to support economic growth.

The endorsement follows remarks by Olayemi Cardoso, Central Bank of Nigeria Governor, who warned that existing cross-border payment systems remain slow, expensive, and fragmented, particularly for developing economies.

While speaking at the G-24 Technical Groups Meeting, Cardoso said global remittance corridors still cost more than six per cent on average, with settlement delays stretching into days and compliance requirements that shut out many micro, small, and medium enterprises (MSMEs).

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In a statement responding to the address, ASN said it shares the CBN’s vision for faster, cheaper, and more inclusive payment systems, arguing that stablecoins and modern digital payment infrastructure can help close existing gaps if backed by clear and coordinated regulation.

Nathaniel Luz, president of ASN, said stablecoins represent more than a speculative asset for Africa. “While stablecoins are a luxury for the West, they are a lifeline for Africa. For our continent, the conversation is not about speculation; it is about solving real payment and trade problems.”

The network stated that cross-border transactions that currently take between two and five days could be settled within minutes using stablecoin infrastructure, while remittance costs of five to seven per cent through traditional channels could fall to below one percent.

ASN said such efficiency gains would be particularly impactful for African MSMEs, improving cash flow, speeding up access to suppliers, and expanding participation in intra-African trade under the African Continental Free Trade Area.

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While acknowledging the CBN’s concerns around currency substitution, foreign exchange volatility, and financial stability, the group argued that these risks can be mitigated through robust regulation rather than delayed adoption.

It cited the Investment and Securities Act 2025, which empowers the Securities and Exchange Commission to oversee digital assets, as a key step toward regulatory clarity.

Emomotimi Agama, SEC’s DG, said at the Nigeria Stablecoin Summit 1.0 that Nigeria is open to stablecoin innovation on terms that protect our markets and empower Nigerians.

He stated that the regulator’s sandbox is attracting strong interest from local and international startups.
The network also pointed to the CBN’s Payments System Vision 2025 as a foundation for collaboration between the apex bank and the SEC on a future stablecoin framework.

While addressing concerns about the naira, Luz said regulation would increase transparency and draw more economic activity into the formal financial system, warning that the greater risk lies in inaction.

“The real threat to monetary sovereignty is being left behind while others shape the future of money,” he stated.

“The way forward is not hesitation but coordination, clarity, and forward-thinking regulation,” Luz said, adding that Nigeria could turn today’s payment challenges into a long-term economic advantage by bringing its regulators under a single, coherent framework.

ASN called for a unified national strategy that aligns the roles of the Nigerian Financial Intelligence Unit, the Nigeria Data Protection Commission, the CBN, the SEC, and other relevant agencies.