Stablecoins have become one of the most discussed financial technologies on the continent recently, and for good reason. Their utility drives their growth in Africa; they already account for 43% of the continent’s crypto transaction volume and are increasing foreign remittance volumes in countries like Nigeria, where they facilitated $22 billion within a year.
Although scepticism remains among African observers, corporations, and governments regarding the viability of stablecoins, considerable evidence suggests that they can open up the continent to international businesses and enhance intra-African trade, which still stands at a modest 14.9%.
The utility of stablecoins as an access mechanism and technology offers a compelling opportunity for the continent that cannot be ignored. While in other parts of the world, crypto and stablecoins are nice-to-haves, in Africa, they solve real problems for individuals and businesses whose demand will only increase in the coming years.
African consumers want access
Stablecoins, digital currencies collateralised by fiat like the dollar or euro, are popular in Africa due to accessibility challenges. For instance, converting foreign currencies to Naira might necessitate visiting several banks. Businesses contend with extensive paperwork for cross-currency and cross-border transactions, enduring lengthy queues in banking halls over multiple days for limited and slow transactions.
According to the $1 trillion payment giant, Stripe, since January 2025, stablecoin transaction volume on Stripe has grown steadily at 30% month-over-month, close to the 38% that Stripe-wide transactions achieved throughout 2024. From its vantage point, this indicates that customers without access to traditional banking or who pay with methods unsupported by international retailers are eager to use stablecoins. This description fits people in developing nations, including Africa, who cannot receive money via PayPal or risk having their WorldRemit accounts suddenly deleted when sending money home.
On the continent, these challenges are exacerbated by local currency restrictions such as caps on foreign currency transaction limits, suspension of local debit cards for international transactions, and even the arrest of parallel market traders. In contrast, stablecoins offer a compelling alternative, providing 24/7, low-cost, and instant transfers, proving to be a viable option even amidst the growing presence of remittance fintechs in Africa. Using stablecoins for $200 remittances from Sub-Saharan Africa cuts costs by roughly 60% compared to traditional fiat methods.
A solution to Africa’s currency problem
A mixture of this shortage and the rapid depreciation of local currencies across Africa has significantly increased consumer and business appetite for foreign-denominated savings. For instance, Nigeria’s naira has lost approximately 80% of its value against the dollar since 2020. Chainalysis reported a rise in stablecoin volume in countries like Nigeria and Ethiopia as their currencies depreciated.
Following the Nigerian government’s 2023 devaluation of the naira, many Nigerian startups earning in naira after raising capital in U.S. dollars faced financial strain. It’s no wonder that many African businesses are adopting stablecoins for treasury management. Yellow Card, Africa’s most funded crypto exchange, saw its annual transaction volume from businesses using its platform for cross-border payments and treasury management more than double from $1.3 billion in 2023 to $3 billion in 2024.
Africa’s currency landscape is also highly fragmented. With 42 different currencies and 861 intra-African payment corridors, a lack of seamless interoperability forces a reliance on scarce foreign currencies. For example, a Ghanaian merchant sending money to an Ivorian supplier typically sees funds converted from Cedis to dollars, then to CFA franc. This process, involving multiple exchange rate fees and inefficiencies, costs multinational corporations $5 billion annually.
Due to this, cross-border solution startups are experiencing significant growth in payment transaction volumes. For instance, Conduit, a payment gateway serving import-export businesses in Africa and Latin America, doubled its annualised payment transaction volume (PTV) from $5 billion to $10 billion. The stealth remittance product Juicyway has processed a total payment volume of $1.3 billion.
Similarly, a newly designed intra-Africa payment platform developed by PAPSS and supported by the African Union—featuring 15 African central banks and 12 payment switches on its network—will enable real-time cross-border settlements across Africa using local currency stablecoins. It is expected to integrate cNGN, a live stablecoin pegged to the Nigerian Naira, and eventually support other African currencies or central bank digital currencies (CBDCs).
For Africa’s 400 million young people, stablecoins, by enabling global payouts, offer an opportunity to tap into the global economy. Zach Abraham, CEO of Bridge (a stablecoins company acquired by Stripe), observed, “Almost all of our product market fit is outside the US,” highlighting that some of the most compelling use cases his company observes involve global payouts, treasury management, and global card products.
While some critics warn of over-dependence on the dollar, dollar-pegged stablecoins can serve as a crucial starting point to harmonising trade on the continent. They can help African countries connect their small businesses with others across the continent, paving the way for eventual replacement with local currency stablecoins or CBDCs.
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Sultan Quadri currently serves as senior content strategist at TechPR Africa, a leading comms company. He has six years of experience reporting on technology’s impact in sub-Saharan Africa for , Al Jazeera, Semafor, Rest of the World, Quartz Africa, and Deutsche Welle, with a strong focus on emerging technologies.
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