Africa Stablecoin Network seeks unified framework for digital assets

2026-02-25 02:32:53

The Africa Stablecoin Network (ASN) has called for a unified regulatory framework to unlock the benefits of stablecoins for the Nigerian economy.

The Network made the call in statement released on Tuesday, where it also expressed support for the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso’s position on the need to modernise cross-border payments.

ASN said it shares the CBN’s vision for faster, cheaper and more inclusive payment systems, noting that stablecoins and digital payment infrastructure can play a major role in achieving those objectives when supported by clear and coordinated regulation.

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What they are saying

ASN President Nathaniel Luz stated that 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,” he said.

According to the network, cross-border transactions that currently take between two and five days can be completed in minutes using stablecoin infrastructure, while remittance costs of 5–7% through traditional channels could fall to below 1%.

It said these efficiency gains would be particularly significant for African micro, small and medium enterprises (MSMEs), improving cash flow, accelerating access to suppliers and enabling broader participation in intra-African trade under the African Continental Free Trade Area (AfCFTA).

Backstory

In his address at the G-24 Technical Groups Meeting, Gov. Cardoso had highlighted the urgent need to reform cross-border payments, noting that current systems remain slow, expensive 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%, settlement lags of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunity,” he said.

ASN acknowledged the risks highlighted by the CBN around currency substitution, foreign exchange volatility and financial stability, but stressed that these concerns can be addressed through a properly designed regulatory framework rather than delaying adoption.

It pointed to the Investment and Securities Act (ISA) 2025, which empowers the Securities and Exchange Commission (SEC) to regulate digital assets, as a major step toward providing that structure.

The network added that the CBN’s Payments System Vision 2025 already provides a pathway for collaboration between the apex bank and the SEC on a regulatory framework for the potential implementation of stablecoins.

More insights

Addressing concerns about the impact on the naira, Luz said a regulated environment would increase transparency and bring more economic activity into the formal financial system.

“When stablecoins operate within a clear Nigerian regulatory framework, transactions become more transparent, value flows are easier to monitor, and economic activity that currently sits outside formal channels is brought into the system,” he said, adding that the real risk to monetary sovereignty is _“being left behind while others shape the future of money.” _

ASN called for a unified national strategy that aligns the roles of the SEC, CBN, Nigerian Financial Intelligence Unit, Nigeria Data Protection Commission and other relevant agencies.

“The way forward is not hesitation but coordination, clarity, and forward-thinking regulation. By bringing its regulatory institutions together under a unified framework, Nigeria can turn today’s payment challenges into tomorrow’s economic advantage,” Luz said.

What you should know

In July last year, the DG of SEC, Dr. Emomotimi Agama, declared that Nigeria was ready to welcome stablecoin businesses, provided they operate within a clear and compliant regulatory framework that empowers Nigerians.

Speaking at the inaugural Nigeria Stablecoin Summit held in Lagos, Agama, Director-General of the Securities and Exchange Commission (SEC), affirmed Nigeria’s commitment to becoming a digital finance leader while ensuring market integrity and investor protection.

Agama emphasized the growing role of stablecoins in Nigeria’s evolving digital economy, noting their increased use by freelancers, traders, and businesses seeking a hedge against naira volatility.

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