Nigeria’s push for a Pan-African payment card could mark another step toward reducing Africa’s long-standing dependence on the U.S. dollar for intra-African transactions. But according to insights shared by BoundlessPay CEO Franklin Peters in a recent CoinAfrica interview, stablecoins may already offer a blockchain-native solution to the very problem policymakers are now trying to solve.
Speaking during a meeting with Mastercard executives in Abuja, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, called for the development of a cross-border payment card that would allow transactions between African currencies without routing through the U.S. dollar or other intermediary currencies.
The proposal aligns with the African Continental Free Trade Area (AfCFTA)’s broader objective of improving intra-African trade by reducing cross-border payment friction.
Africa’s Cross-Border Payments Problem
Today, many card transactions between African countries are processed through correspondent banking networks outside the continent.
For example, a Nigerian making a purchase in Ghana often experiences a settlement path that follows:
Naira → U.S. Dollar → Ghanaian Cedi
Each conversion introduces additional foreign-exchange costs, settlement delays, card-network fees, and exposure to exchange-rate volatility.
Oyedele’s proposal seeks to eliminate that unnecessary routing by enabling direct settlement between African currencies through a Pan-African payment infrastructure.
If implemented successfully, businesses and consumers could benefit from faster transactions, lower payment costs, and stronger regional trade integration.
Franklin Peters: Stablecoins Already Solve Much of the Problem
The government’s proposal closely mirrors arguments made by Franklin Peters during a recent exclusive interview with CoinAfrica on the future of African payments.
Peters argued that Africa’s biggest payments challenge is not a lack of payment applications but inefficient settlement infrastructure.
“The real problem isn’t moving money,” Peters explained. “It’s how money settles across borders.”
According to Peters, today’s cross-border payment rails depend heavily on correspondent banks, multiple intermediaries, and foreign currencies before transactions can be completed.
Stablecoins, he argued, remove much of that complexity by allowing value to move directly across blockchain networks without requiring several layers of currency conversion.
Rather than routing payments through multiple financial institutions, blockchain-based settlement enables transactions to be completed almost instantly while reducing costs and operational friction.
You may also like: Stablecoins Will Reshape African Finance – Franklin Peters
Different Technologies, Same Objective
Although the Nigerian government’s proposal and Peters’ vision rely on different technologies, they ultimately pursue the same goal.
Traditional card infrastructure aims to modernize existing payment rails.
Stablecoins seek to rebuild the settlement layer altogether.
Consumers may still use familiar payment interfaces such as bank cards, fintech applications, or mobile wallets, but the underlying movement of funds could increasingly occur through blockchain infrastructure.
That distinction could become increasingly important as African governments, fintech companies, and payment providers explore new ways to facilitate regional commerce under AfCFTA.
Stablecoins Could Complement, Not Replace, Card Networks
Rather than viewing card networks and stablecoins as competing technologies, industry participants increasingly see them as complementary.
Card networks provide consumer familiarity, merchant acceptance, and established financial infrastructure.
Stablecoins offer programmable settlement, lower transaction costs, faster transfers, and reduced dependence on correspondent banking.
Several fintech companies across Africa are already experimenting with blockchain-based settlement while maintaining traditional payment interfaces for end users.
This hybrid approach could accelerate adoption without requiring consumers to fundamentally change how they pay.
What It Means for Africa’s Digital Economy
Oyedele’s proposal highlights a growing recognition among policymakers that Africa’s payments infrastructure requires modernization if the continent is to realize the full benefits of AfCFTA.
For years, payment inefficiencies have increased the cost of intra-African commerce despite neighboring countries sharing significant trade opportunities.
As governments pursue new payment infrastructure and blockchain companies continue expanding stablecoin-based solutions, the future of African payments may ultimately combine both approaches.
Whether transactions settle through a Pan-African card network or blockchain-powered stablecoins, the objective remains the same: enabling Africans to move value across borders faster, cheaper, and without unnecessary dependence on external currencies.
Franklin Peters’ assessment suggests that while governments are beginning to address the problem, blockchain technology may already be demonstrating what the next generation of African payment infrastructure could look like.
Key Takeaways
- Nigeria proposes a Pan-African payment card to reduce reliance on the U.S. dollar.
- The initiative supports AfCFTA’s goal of improving intra-African trade.
- Franklin Peters argues that stablecoins already solve many cross-border payments challenges.
- Both traditional payment infrastructure and blockchain aim to reduce transaction costs and improve payment efficiency.
- Africa’s future payment ecosystem may combine card networks with blockchain-based settlement.
