The Africa Stablecoin Network (ASN) has urged the adoption of a unified regulatory framework to unlock the potential of stablecoins for Nigeria’s economy.
In a statement released on Tuesday, ASN expressed its support for the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, who emphasized the need to modernize cross-border payment systems.
ASN highlighted its alignment with the CBN’s vision of creating faster, more affordable, and inclusive payment systems. The organization noted that stablecoins, supported by clear and coordinated regulations, could play a key role in achieving these goals.
Why Stablecoins Matter
Africa Stablecoin Network President Nathaniel Luz explained. That while stablecoins may be a convenience in Western economies, they are essential for Africa.
“For our continent, the conversation isn’t about speculation—it’s about solving real payment and trade challenges,” Luz stated.
The network emphasized that stablecoin infrastructure could reduce cross-border transaction times from 2–5 days to just minutes. Additionally, remittance costs, which currently range between 5–7% through traditional channels, could drop to below 1%.
These improvements, ASN noted, would be especially beneficial for African micro, small, and medium enterprises (MSMEs). Faster transactions and lower costs would enhance cash flow, improve supplier access, and enable greater participation in intra-African trade under the African Continental Free Trade Area (AfCFTA).
The Bigger Picture
Governor Cardoso, speaking at the G-24 Technical Groups Meeting, underscored the urgent need to reform cross-border payments. He pointed out that current systems are slow, expensive, and fragmented, particularly in developing economies.
“Today, cross-border payments remain too slow, too costly, and too fragmented, especially for developing economies. With global remittance corridors costing over 6%, settlement delays of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunities,” Cardoso said.
While ASN acknowledged the risks raised by the CBN—such as currency substitution, foreign exchange volatility, and financial stability—it argued that these challenges can be mitigated through well-designed regulations. Delaying adoption, the network warned, would only hinder progress.
