Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), has cautioned that the rapid rise of digital cross-border payment platforms and stablecoins could weaken monetary sovereignty if not properly regulated.
Speaking at the 2026 technical meeting of the Intergovernmental Group of Twenty-Four in Abuja, Cardoso said while digital innovation can lower remittance costs and expand financial inclusion, it also poses risks to emerging markets and developing economies.
He warned that the growth of private digital payment systems could fuel currency substitution, disrupt monetary policy transmission, heighten foreign exchange volatility and intensify capital flow pressures.
According to him, “Without regulatory coordination, cross-border digital payments could become fragmented, reinforce dominant currencies and undermine the ability of developing countries to protect their monetary independence.”
Cardoso described cross-border payments as central to the global monetary system but noted that remittance costs remain above six percent on average, with settlement delays and compliance hurdles limiting participation by small businesses.
Highlighting Nigeria’s reforms, he said the CBN launched the National Payment Stack in June 2025 — a real-time payment infrastructure built on ISO 20022 standards to support multi-currency and cross-border transactions.
The bank has also strengthened anti-money laundering and counter-terrorism financing controls in line with global standards.
On diaspora remittances, Cardoso said new instruments, including non-resident Nigerian accounts and a dedicated BVN platform, have increased inflows to an average of $600 million monthly, with a target of $1 billion in sight.
He also referenced initiatives such as mBridge, Dunbar and the Pan-African Payment and Settlement System (PAPSS), saying they demonstrate how digital systems can support local-currency trade settlement and reduce reliance on major reserve currencies.
Cardoso stressed that central banks must take the lead in shaping digital finance reforms to ensure they strengthen, rather than destabilise, financial systems.
