CBN Warns Digital Payments Risk FX Stability at G-24 Meeting

During a plenary speech at the G-24 technical group meeting held on Thursday in Abuja, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso warned that the rapid expansion of digital payment platforms and stablecoins could threaten foreign exchange stability and trigger capital flow pressures in emerging markets. While acknowledging that digital payment systems offer significant opportunities for financial inclusion and operational efficiency, Cardoso stressed the necessity for proactive regulatory oversight to mitigate structural vulnerabilities.

He highlighted that without proper coordination and innovation, monetary control could weaken, destabilizing the foreign exchange market. Dr. Iyabo Masha, Director of the G-24 Secretariat, noted that global growth remains uneven, with countries needing to drive momentum for overall expansion.

She pointed out that Nigeria has seen a significant rise in digital payment adoption, reflecting broader efforts to deepen financial inclusion and modernize the country’s payment infrastructure.