Africa Stablecoin Network backs CBN on payment overhaul

The Africa Stablecoin Network has thrown its weight behind Governor Olayemi Cardoso of the Central Bank of Nigeria over his call to modernise cross-border payments, urging regulators to adopt a coordinated framework that would unlock the benefits of stablecoins for the Nigerian economy.

Cardoso, speaking at the Intergovernmental Group of Twenty-Four Technical Groups Meeting, said cross-border payments remain slow, costly and fragmented, particularly for developing economies.

“Today, cross-border payments remain too slow, too costly, and too fragmented, especially for developing economies. With global remittance corridors costing over 6.0 per cent, settlement lags of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunity,” he said.

In a statement on Tuesday, the Africa Stablecoin Network said it shares the apex bank’s vision for faster, cheaper and more inclusive payment systems, adding that stablecoins and digital payment infrastructure could help achieve those objectives if supported by clear and harmonised regulation.

The President of the network, Nathaniel Luz, said stablecoins address real economic constraints across the continent.

“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,” Luz said.

According to the group, cross-border transactions that currently take between two and five days could be completed within minutes using stablecoin infrastructure. It added that remittance costs of five to seven per cent through traditional channels could fall to below 1 per cent under a blockchain-based settlement system.