Stablecoins are rapidly transforming the African financial industry, enabling faster and cheaper money transfers. Former UN Secretary-General Vera Songwe spoke at Davos, stating that remittances are now “more important than aid,” highlighting the traditional transfer costs of up to $6 per $100 sent. Stablecoins reduce fees and shorten transaction times, helping individuals and small businesses send money within minutes.
With inflation exceeding 20% in 12–15 countries and 650 million people without bank accounts, stablecoins allow smartphone users to store value securely. The highest adoption rates are in Egypt, Nigeria, Ethiopia, and South Africa, mainly by small and medium-sized enterprises.
Africa leads the world in stablecoin adoption with a rate of 9.3%, with Nigeria having 25.9 million users. When local currencies depreciate, residents use stablecoins to transfer money and hedge against risks.
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