Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has cautioned that the rapid growth of digital cross-border payment systems and stablecoins may undermine national monetary sovereignty if left unregulated.
Speaking at the 2026 technical group meeting of the Intergovernmental Group of Twenty-Four (G-24) in Abuja, Cardoso highlighted that while digital financial innovation offers opportunities to lower remittance costs and promote financial inclusion, it also poses systemic risks for emerging and developing economies.
Brandspur Banking News Desk reports that the CBN governor raised concerns over potential currency substitution, weakened monetary transmission, increased foreign exchange volatility, and heightened capital flow pressures if private digital platforms expand without coordination. He noted that fragmented digital cross-border systems could entrench dominant currencies, raise transaction costs, and limit emerging economies’ ability to safeguard monetary policy autonomy.
Cardoso described cross-border payments as the “backbone” of the international monetary system, citing inefficiencies that still burden developing countries. He revealed that global remittance corridors average over 6 per cent in fees, with settlement delays lasting several days, and compliance requirements that exclude micro, small, and medium enterprises (MSMEs) from global trade.
He highlighted Nigeria’s efforts to modernise its payments ecosystem, including the June 2025 launch of the National Payment Stack, a real-time, multi-currency payment platform built on ISO 20022 standards. The apex bank has also strengthened anti-money laundering and counter-terrorism financing (AML/CFT) measures, including dual screening for cross-border transactions.
Cardoso said new instruments targeting Nigerians in the diaspora, such as the Non-Resident Nigerian Ordinary Account (NRNOA), Non-Resident Nigerian Investment Account (NRNIA), and a non-resident BVN platform, have improved access and increased remittance inflows to about $600 million per month, with projections to reach $1 billion monthly soon.
He emphasised that digital payment innovations are enabling local-currency settlements in international trade, reducing reliance on a limited set of reserve currencies. Cardoso cited initiatives like mBridge, Dunbar CBDC experiments, and Africa’s Pan-African Payment and Settlement System (PAPSS) as tools supporting intra-African trade under the AfCFTA framework while enhancing financial sovereignty.
The CBN governor concluded that central banks must lead the digital transition to ensure financial stability, modernise payment infrastructure, and maintain trust. He urged policymakers to shape the global financial architecture proactively rather than adapt reactively, positioning digital cross-border payments as a public good capable of rebalancing global finance.
