The Future of Finance – A Call for African Leadership in the Digital Asset Era
By Banyong Fonyam Jonie Jr., Managing Partner, Fonyam and Partners Law Firm.
Global Shifts in Payment Rails & Digital Assets: An Imperative for African Central Banks and Financial Institutions
The global financial infrastructure is undergoing a profound, institutional-driven transformation. The formation of Qivalis, a euro stablecoin consortium by 10 major European banks, alongside strategic moves by players like Visa in rebuilding national payments stacks and Kraken’s partnership with Deutsche Börse, signals a decisive pivot: digital assets and blockchain-based rails are being integrated into the core of mainstream finance. For Africa, this is not merely a technological trend to observe—it is a strategic crossroad. Hesitation now could cement dependency on external systems and stifle intra-African trade and financial inclusion. This briefing analyzes key developments and presents a urgent case for proactive, sophisticated regulation and adoption across African jurisdictions, positioning our firm as a ready partner in this essential transition.
- The Macro Shift: From Resistance to Institutional Adoption
European Banks Claim Their Digital Sovereignty: The creation of Qivalis is a watershed. It is not a crypto-native experiment but a calculated move by incumbent giants (ING, UniCredit, BNP Paribas) to control the future of euro-denominated digital payments. Their goal is “European payments autonomy” against USD-dominated stablecoins.
Implication for Africa:This demonstrates that the question for monetary authorities is no longer if digital currency rails will matter, but who will control them. African central banks have a window to shape regional digital currency ecosystems—be it through Central Bank Digital Currencies (CBDCs) or regulated stablecoin frameworks—that serve African priorities: reducing remittance costs, facilitating intra-African trade, and enhancing monetary policy tools.
2. Cross-Border Payments: The Arena Where Africa Feels the Pain—and Stands to Gain the Most
India’s Model via Razorpay: India’s RBI granting a cross-border payments aggregator licence exemplifies how clear regulation unlocks innovation. It allows global access to local payment systems (like UPI) without onerous local entity requirements.
Stablecoin Rails Go Global: OwlTing’s integration with Circle’s Payments Network (CPN) for USDC flows into regions like Brazil and Nigeria highlights stablecoins’ evolving role as regulated B2B and remittance plumbing.
Call to Action for CEMAC/WAEMU: The extant cross-border payment frictions within the CFA franc zones and across Africa are precisely the problem these technologies solve. Regulatory frameworks that welcome and safely govern similar licensed aggregators and regulated stablecoin channels can dramatically reduce costs and latency for businesses and citizens.
3. The Institutionalization of On/Off-Ramps and Banking Infrastructure
Kraken & Deutsche Börse: This partnership bridges the crypto and traditional worlds, offering “bank-grade” FX liquidity and custody. It signifies that leading financial institutions now demand seamless, regulated digital asset access.
The Rise of Crypto-Linked IBANs (Mt Pelerin) and Virtual IBANs: Products that merge traditional IBANs with self-custody wallets are blurring the lines between conventional and digital finance. They offer users flexibility while operating within identifiable banking frameworks.
Opportunity for African Banks: Rather than seeing this as a threat, African financial institutions can partner with regulated technology providers to offer next-generation hybrid services. This can attract a new generation of customers, retain capital within the banking system, and create new revenue lines.
4. The Regulatory Horizon: Clarity is Becoming the Global Norm
TRM Labs’ 2025 Findings: Over 70% of key jurisdictions advanced stablecoin rules this year. The Bank of England’s consultation on systemic sterling stablecoins provides a blueprint for “bank-like” digital asset regulation.
Contrast with Reactionary Bans: While some authorities reiterate hardline positions, the global momentum is toward structured regulation, not outright prohibition. Prohibition simply drives activity underground or offshore, ceding control and foregoing tax revenue.
A Path for African Regulators: The MiCAR framework in Europe offers lessons. Africa can develop proportionate, risk-based regulations that:
1. Protect consumers and ensure financial stability.
2. Provide clarity for entrepreneurs and investors.
3. Encourage innovation within secure perimeters.
5. Deep Dive: The Inevitable Integration and Africa’s Strategic Choice
The theme is clear: stablecoins and digital asset rails are being pulled into the regulated financial system.They are transitioning from “crypto plumbing” to “bank-native infrastructure.”
For African policymakers and financial leaders, the “operator question” posed in the original briefing is paramount: What’s the first place you’d plug stablecoins into your stack? The potential use cases are immediate:
Settlement: For instant, low-cost settlement between domestic and regional banks.
Trade Finance: Programmable, tokenized assets for intra-African export/import.
Remittances: Drastically reducing the cost and time for diaspora payments.
Treasury Management: For businesses operating across multiple African currencies.
Conclusion & Position of Fonyam and Partners
The velocity of change in digital finance is accelerating. Africa has a historic opportunity to leapfrog legacy systems and build a more integrated, efficient, and inclusive financial landscape. This requires courage, vision, and collaboration.
We call on BEAC, the BCEAO, and Central banks across Africa to:
1. Engage Proactively: Initiate structured dialogues with innovators, legal experts, and risk managers to understand the technology.
2. Develop Forward-Looking Frameworks: Create regulatory sandboxes and pilot programs to test use cases relevant to African economies.
3. Foster Public-Private Partnership: Collaborate with the private sector to build secure, interoperable infrastructure.
Fonyam and Partners is positioned at the nexus of law, finance, and technology.We stand ready to act as a strategic partner to:
Founders & Investors: Navigating the emerging regulatory landscape and structuring compliant ventures.
Banks & Financial Institutions: Developing internal policies, partnership agreements, and risk frameworks for digital asset integration.
Regulators & Policymakers: Drafting legislation, advising on regulatory design, and facilitating stakeholder engagement.
The future of African finance will be built on digital rails. Let us build it wisely, together, and on our own terms.
Banyong Fonyam Jonie Jr.
Managing Partner
Fonyam and Partners Law Firm
Pioneering the Future of African Finance & Law