Africa is seeing a quiet shift in how people send and hold value. Mobile phones are central. According to Vera Songwe, a former UN under-secretary-general, millions who lack bank accounts can use stablecoins to protect savings and move money faster. That access matters in places where inflation has been high and bank fees are steep.
Use By Businesses And Everyday People
Reports have disclosed that stablecoins now make up around 43% of all crypto transaction volume in sub-Saharan Africa. Nigeria alone processed nearly $22 billion in dollar-linked stablecoin activity over a recent 12-month span.
That money is used for remittances, payroll and business settlements. Firms and market traders are among the biggest users, but many everyday people are joining in too.
In countries such as Egypt, Nigeria, Ethiopia and South Africa, demand is driven by volatile local currencies and rules that limit access to dollars. Mobile money networks help push adoption along.
Stablecoins Speed Up Cross-Border Payments
Traditional remittances can be costly. At a World Economic Forum panel in Davos, Switzerland on Thursday, Songwe noted that sending $100 through traditional money transfer services in Africa often costs around $6, making cross-border payments both slow and costly.
Stablecoins cut those costs and shorten wait times from days to minutes for many transfers. Small payments and wages can be settled quickly, and that speed changes how businesses plan cash flow.
Local Rules Are Changing Fast
Governments are reacting in different ways. Ghana passed a Virtual Asset Service Providers law to bring trading into a formal framework. On January 13, Nigeria required crypto platforms to link transactions to tax ID numbers, a move meant to bring activity into official records.
South Africa’s central bank has warned that stablecoins and other tokens could pose risks to financial stability as use grows. Policy is being written while users and tech firms keep pushing ahead.
Risks And The Road Ahead
High inflation remains a core reason people are turning to stablecoins. Reports say inflation has exceeded 20% in 12 to 15 countries since the pandemic, and that reality pushes people to look for alternatives to local notes.
Everyday Use, Measured Change
What started as a tech niche has grown into a practical tool for many across the continent. For small and medium businesses, the benefit is clear: faster settlements and lower costs.
For people without bank accounts, a smartphone can now open a route to store value in currencies less tied to local inflation. Adoption will likely keep rising, but how quickly it becomes part of mainstream finance will depend on stronger rules, better safeguards, and the continued spread of simple mobile services that people trust.
Featured image from Unsplash, chart from TradingView
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