Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the Bank’s commitment to a balanced, risk-based approach in regulating cryptocurrencies and stablecoins, emphasizing that while innovation is encouraged, it must not come at the expense of financial stability.

Speaking at a public dialogue hosted by the Wheeler Institute for Business and Development at the London Business School, Cardoso said Nigeria’s central bank is adopting new supervisory strategies that combine openness to technological advancement with firm risk controls.

The event, supported by J.P. Morgan and Goldman Sachs, was moderated by Professor Hélène Rey, Lord Bagri Professor of Economics.

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“The crypto market in Nigeria developed a life of its own,” Cardoso said. “Innovation is good, but it must rest on transparency and sound risk management. Innovation is welcome; unregulated risk is not.”

The governor disclosed that the CBN is collaborating with the Securities and Exchange Commission (SEC) to develop a unified regulatory framework for digital assets. According to him, the goal is to manage risks without stifling innovation.

“Stablecoins and new payment rails can deepen inclusion,” he explained. “But if left unchecked, they can also accelerate dollarization. Our role is to ensure that innovation strengthens, not weakens, the naira.”

Cardoso also revealed that the Bank 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,” he said. “We have already adopted AI in parts of the Bank. By 2026, we aim for a digital-first regulatory culture that makes oversight faster, smarter, and more transparent.”