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The growing adoption of virtual assets presents an opportunity to expand the capabilities of traditional financial systems, but effective integration will depend on appropriate regulatory frameworks, according to Zeal Akaraiwe, Group Chief Executive Officer of FMDQ Group Plc.
Speaking at the S&P Global Africa Summit 2026 in Lagos on Tuesday, Akaraiwe said virtual assets were becoming an established part of the financial landscape, making it important for regulators and market participants to consider how emerging digital instruments could operate alongside conventional financial mechanisms.
Virtual assets offer opportunities for Africa’s financial markets
Akaraiwe made the remarks during a panel discussion titled Beyond Banking: Fintech, Digital Assets and the Future of Capital Flows in Africa, which examined how financial innovation, regulation and market infrastructure could strengthen financial connectivity across the continent.
He described the continued growth of digital assets as an irreversible development, stating that “the virtual asset world is here to stay”.
Rather than treating virtual assets as separate from established financial systems, his comments pointed to the need for approaches that allow both to coexist and complement one another within appropriately regulated markets.
The FMDQ chief executive acknowledged the importance of existing foreign exchange controls in protecting national economies and safeguarding financial systems against economic abuses. However, he also highlighted the need for regulatory frameworks to evolve in response to emerging technologies and changing investment patterns.
Such adaptation, he suggested, could support more efficient capital flows while maintaining the safeguards required to protect financial stability.
Regulation remains central to virtual asset integration
The discussion highlighted the importance of balancing financial innovation with effective oversight as virtual assets become more prominent in global and African markets.
Akaraiwe’s position underscored the role of regulation in creating an environment where emerging digital financial instruments can be integrated into traditional finance without compromising the protections provided by existing financial frameworks.
Other panellists also stressed the need to build confidence in emerging financial instruments through clear regulatory oversight, credible asset backing and reliable settlement arrangements.
These considerations remain important to the wider adoption of virtual assets, particularly where financial institutions and investors require confidence in the integrity, security and reliability of digital transactions.
Participants also examined the practical value of digital financial solutions, noting that adoption would depend on their ability to deliver measurable improvements in transaction speed, cost, security and reliability.
Cross-border capital mobility and local processing could drive investment
Looking ahead to Africa’s next investment cycle, Akaraiwe identified three developments with the potential to contribute significantly to economic growth: wider adoption of appropriately regulated virtual assets, improved cross-border capital mobility and increased investment in local processing capacity.
He highlighted the relationship between financial connectivity and industrial development, suggesting that stronger cross-border investment flows, combined with greater capacity to process raw materials within Africa, could create additional opportunities for regional trade and economic expansion.
Increasing local processing capacity could also help African economies capture more value from their natural resources, while improved financial connectivity could support the movement of capital towards productive investment opportunities.
The remarks placed digital finance within a broader discussion about Africa’s ability to attract investment, strengthen its productive sectors and improve participation in international markets.
African financial institutions urged to strengthen market connectivity
The summit discussion also highlighted the importance of closer coordination among African financial institutions and regulatory authorities as the continent works towards more efficient cross-border payment and settlement systems.
Panellists noted that improved cooperation could help address fragmentation across financial markets and support more reliable movement of funds between countries.
The broader conversation reflected growing interest in how virtual assets, fintech innovation and established financial infrastructure can work together to expand access to capital and improve financial market efficiency.
For African markets, the challenge will be to develop regulatory and market structures that accommodate emerging financial technologies while preserving confidence, transparency and stability across the financial system.
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