Cardoso: CBN Welcomes Innovation but Will Not Tolerate Unregulated Crypto Risks
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reiterated the Bank’s commitment to maintaining a delicate balance between promoting innovation and safeguarding the country’s financial system from emerging risks associated with cryptocurrencies and digital assets.
Speaking at a public dialogue organized by the Wheeler Institute for Business and Development at the London Business School, Cardoso said the CBN is open to technological advancement but will not compromise its responsibility to ensure financial stability.
The high-level event, supported by J.P. Morgan and Goldman Sachs, was moderated by Professor Hélène Rey, Lord Bagri Professor of Economics.
Cardoso noted that the rapid growth of cryptocurrency adoption in Nigeria presented both opportunities and significant regulatory challenges, adding that the CBN’s approach is to encourage innovation while managing its risks within a transparent and accountable framework.
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.
He explained that the Central Bank is working closely with the Securities and Exchange Commission (SEC) and other key agencies to design a unified regulatory framework that provides clarity for operators in the crypto and fintech space while protecting consumers and the wider economy from systemic threats.
Stablecoins and new payment rails can deepen inclusion, the governor stated. But if left unchecked, they can also accelerate dollarization. Our role is to ensure that innovation strengthens, not weakens, the naira.
Cardoso stressed that Nigeria must avoid the pitfalls of unregulated crypto markets that have disrupted economies elsewhere. He said the CBN’s priority is to ensure that innovation is not exploited to undermine monetary sovereignty or destabilize the national currency.
The governor also revealed that the apex bank has already begun integrating artificial intelligence (AI) and machine learning tools into its supervisory and data management processes as part of broader reforms to modernize financial oversight.
Our board recently held a retreat themed Digitalization and Artificial Intelligence,” Cardoso disclosed. “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.
He said the CBN’s renewed focus on digital transformation would strengthen the institution’s ability to monitor market activities, detect anomalies early, and respond more efficiently to emerging threats in the financial ecosystem.
According to Cardoso, adopting AI-driven tools is not only about improving regulatory efficiency but also about aligning Nigeria’s central banking practices with global standards. He added that as financial innovation accelerates globally, regulatory frameworks must evolve in parallel to ensure safety, inclusion, and resilience.
Cardoso’s remarks come amid growing interest in digital currencies across Africa. Nigeria, one of the continent’s largest cryptocurrency markets, has witnessed increased activity despite earlier regulatory restrictions.
In 2021, the CBN directed commercial banks to close accounts associated with cryptocurrency transactions, citing concerns over money laundering, terrorism financing, and volatility risks. However, following ongoing stakeholder consultations and international developments, the apex bank has since reviewed its stance and is now working toward a comprehensive regulatory approach that balances innovation with control.
Industry observers have described the CBN’s current position as a pragmatic shift that reflects global best practices. Across the world, central banks and regulators are adopting mixed strategies that allow innovation to thrive under structured oversight.
Financial analysts note that Nigeria’s move toward a unified digital asset framework could attract legitimate investors, improve consumer protection, and expand access to financial services particularly among young Nigerians who are increasingly active in the digital economy.
At the same time, experts warn that improper regulation could fuel capital flight and speculative trading that might further pressure the naira. Cardoso’s insistence on maintaining a balance, they say, signals a more measured and data-driven regulatory posture by the CBN.
Concluding his remarks, the CBN governor emphasized that the ultimate goal is not to suppress innovation but to ensure that financial technology aligns with the Bank’s broader objective of sustainable economic growth and monetary stability.
We welcome innovation, but it must be responsible,” he said. “The future of finance in Nigeria will be digital, but it must also be safe, transparent, and inclusive.