The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reiterated the apex bank’s commitment to a cautious yet progressive approach to regulating cryptocurrencies and stablecoins in Nigeria.
Speaking at a public dialogue hosted by the Wheeler Institute for Business and Development at the London Business School, Cardoso stated that while the CBN supports innovation in the financial sector, it must be anchored on sound risk management and transparency.
“Innovation is good, but it must rest on transparency and sound risk management. Innovation is welcome; unregulated risk is not,” Cardoso said during the event, which was supported by J.P. Morgan and Goldman Sachs and moderated by renowned economist, Professor Hélène Rey.
Cardoso acknowledged that the Nigerian crypto market has evolved rapidly, often outpacing regulatory oversight. In response, he revealed that the CBN is collaborating with the Securities and Exchange Commission (SEC) to craft a unified regulatory framework for digital assets.
He explained that while technologies such as stablecoins and alternative payment platforms have the potential to boost financial inclusion, they also carry risks that must be managed to protect the national currency.
“Stablecoins and new payment rails can deepen inclusion,” he said. “But if left unchecked, they can also accelerate dollarization. Our role is to ensure that innovation strengthens, not weakens, the naira.”
As part of efforts to modernize its regulatory capabilities, Cardoso disclosed that the CBN has begun integrating artificial intelligence (AI) and machine learning tools into its market supervision and data governance systems.
“Our board recently held a retreat themed Digitalization and Artificial Intelligence. We have already adopted AI in parts of the Bank,” he said. “By 2026, we aim for a digital-first regulatory culture that makes oversight faster, smarter, and more transparent.”
The CBN governor emphasized that the bank’s evolving approach is designed to strike a balance between fostering innovation and preserving financial stability in Nigeria’s rapidly changing digital economy.
