CBN Governor warns stablecoins and private digital payments may increase FX volatility and weaken monetary policy in Nigeria

The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has cautioned that the rising adoption of stablecoins and private digital payment platforms could amplify foreign exchange volatility and undermine monetary policy in emerging economies.

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He delivered the warning on Thursday during the opening ceremony of the G-24 Technical Group Meeting in Abuja.

Speaking at the event, Cardoso highlighted the dual nature of digital innovation, describing it as a historic opportunity to enhance cross-border payment efficiency while also posing risks to macroeconomic stability.

“Without coordination, digital cross-border payments risk becoming fragmented across jurisdictions, entrenching dominant currencies and platforms, reducing interoperability, increasing costs, and undermining the ability of Emerging Market and Developing Economies to safeguard monetary sovereignty,” he said.

Cardoso explained that cross-border payments remain slow, costly, and fragmented, particularly for developing countries, noting that global remittance corridors often cost over six per cent and involve settlement delays of several days.

These inefficiencies, he said, adversely affect small and medium-sized enterprises and inflate foreign exchange transaction costs.

He urged that robust digital infrastructure, including instant payment systems, interoperable platforms, distributed ledger technology, and digital identity frameworks, could lower transaction costs, shorten settlement times, and strengthen monetary policy transmission if governed effectively.

The CBN Governor also highlighted Nigeria’s efforts to modernise its payment ecosystem, including enhanced oversight of payment infrastructure providers, improved agent banking regulations, and greater interoperability across payment channels.

He revealed that the apex bank is finalising the Payment System Vision 2028, designed to boost innovation, resilience, and financial inclusion, with a strong focus on cross-border payments.

Cardoso noted recent reforms targeting the remittance sector, such as the launch of the National Payment Stack in June 2025, enabling real-time multi-currency transactions, and the introduction of the Non-Resident Nigerian Ordinary Account, Investment Account, and BVN platform for Nigerians abroad.

“These reforms have increased remittance inflows to about $600 million per month, with expectations to reach $1 billion soon,” he said.

He concluded by emphasising the central bank’s responsibility to safeguard financial and monetary stability while embracing digital innovations.

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“The task before us is clear: To shape the future of global finance, rather than be shaped by it,” Cardoso added, reaffirming Nigeria’s commitment to collaborating with the G-24, IMF, and World Bank Group.