In the space of just a few years, stablecoins, digital tokens designed to maintain price stability by being pegged to assets like the United States dollar, have evolved from niche crypto instruments to indispensable tools of financial resilience in some of the world’s most dynamic emerging economies. Africa’s largest economies, Nigeria and South Africa, are now among the fastest-growing markets globally for stablecoin adoption, outpacing many developed nations and redefining the contours of digital finance.
This transformation is rooted less in speculative fervour and more in everyday economic imperatives: a pressing need for efficient payments, protection against local currency volatility, and new forms of cross-border settlement that traditional systems struggle to deliver. As policymakers, businesses and citizens reassess how money moves and holds value in an increasingly digital world, stablecoins have quietly but significantly reshaped the financial terrain across the continent.
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Recent data from the Stablecoin Utility Report, a global study conducted by YouGov in partnership with fintech firms including BVNK, Coinbase and Artemis, highlights the extraordinary uptake in Africa’s two largest economies. Surveying more than 4,650 respondents across 15 countries, the report found that almost 80 per cent of crypto users in both Nigeria and South Africa already hold stablecoins, and over 75 per cent plan to increase their holdings in the year ahead.
In Nigeria, the appetite is particularly striking: 95 per cent of respondents expressed a preference for receiving payments in stablecoins rather than the local Naira. This marks a profound shift in attitudes towards digital currency, driven by the daily challenges faced by households and businesses alike.
Beyond adoption rates, stablecoin usage is also significant in transactional terms. In Sub-Saharan Africa, stablecoins now represent roughly 43 per cent of all cryptocurrency transaction volumes, underlining their growing role both as a settlement medium and as a viable financial asset in everyday economic activity.
The rapid adoption of stablecoins in Nigeria and South Africa must be understood against the backdrop of persistent macroeconomic pressures. In Nigeria, chronic volatility in the Naira, coupled with inflation and difficulties accessing hard currency, has incentivised individuals and firms to seek dollar-pegged alternatives that preserve purchasing power and facilitate trade. In the 12 months ending mid-2025, Nigeria alone accounted for over $92 billion in crypto transaction value, nearly three times that of South Africa, highlighting its central role in the region’s digital finance ecosystem.
Globally, the stablecoin market is substantial and expanding. With a valuation exceeding $310 billion, dominated by U.S. dollar-pegged tokens such as Tether (USDT) and USDC, stablecoins have graduated from being peripheral crypto assets to foundational elements of digital finance infrastructure.
From Speculation to Everyday Utility
While stablecoin adoption in Africa’s largest economies initially grew through trading and investment behaviour, there are clear signs of a shift towards practical financial use cases. According to the YouGov-BVNK survey, although a large portion of stablecoin activity remains tied to trading, Nigeria and South Africa are witnessing increasing use of stablecoins for everyday needs, including consumer payments and remittances. Around 62 per cent of Nigerian users and 50 per cent of South African users report stablecoins now feature in their routine transactions — a significant evolution from purely speculative participation.
The growing merchant appetite for accepting stablecoins, supported by infrastructure providers and payment gateways, further signals this transition. Platforms across the continent have reported sharp increases in African clients using stablecoin rails for cross-border payments, citing faster settlement times and noticeably lower fees than traditional correspondent bank channels.
One of the most tangible benefits of stablecoins is their potential to lower the cost and friction of cross-border payments. Traditional remittance channels, often dominated by correspondent banking networks and informal agents, can impose high fees and slow processing times. In parts of Africa, sending $100 internationally can attract charges as high as $30, a cost burden that stablecoin technology can dramatically reduce.
With intra-African payments traditionally accounting for a small fraction of total flows, the entry of stablecoin networks positions the continent to leapfrog legacy systems, creating near-real-time settlement options that are especially attractive for diaspora transfers, intra-regional commerce, and freelance or platform-based labour payments.
Regulatory Crossroads: Opportunity and Caution
Despite the momentum, central banks and regulators remain circumspect. Stablecoins’ reliance on foreign currency pegs raises concerns about economic dollarisation, where domestic economic activity shifts towards dollar-linked instruments, potentially undermining monetary sovereignty and reducing the effectiveness of local monetary policy. Central bank governors in emerging markets have also cautioned that widespread stablecoin adoption could affect domestic deposits and bank liquidity.
In response, regulatory agencies in Nigeria and South Africa are actively exploring frameworks that balance innovation with financial stability. Nigeria’s Securities and Exchange Commission has clarified that digital assets, including stablecoins, fall under securities regulation, whilst initiatives such as the Accelerated Regulatory Incubation Programme aim to integrate digital asset platforms into formal regulatory frameworks.
Across the continent, discussions are underway on how best to harness the benefits of stablecoin technology, whether through licensing frameworks, consumer protection measures, or encouraging responsible integration with existing financial systems. This cautious but engaged approach reflects a broader global debate among policymakers about how to embrace digital money without ceding control of critical financial levers.
The trends unfolding in Nigeria and South Africa are not unique to Africa alone. Across emerging markets from India to parts of Southeast Asia, stablecoin adoption has surged as citizens and firms seek efficient, low-cost alternatives to traditional financial infrastructure. However, Africa’s experience highlights some distinctive features: high mobile penetration, significant unbanked populations, and structural currency challenges that make stablecoins not just an alternative but a potential enabler of financial inclusion and economic resilience.
Moreover, global developments, such as evolving stablecoin regulatory regimes in the United States and increasing institutional interest in dollar-pegged tokens, have provided additional legitimacy and liquidity that underpin adoption in frontier markets.
Digital Money and Africa’s Financial Evolution
Stablecoins are rapidly moving beyond the periphery of crypto trading to become a substantive part of Africa’s financial landscape. In Nigeria and South Africa, the appeal of dollar-linked digital money reflects deeper economic needs: a desire for efficient payments, access to stable value, and practical solutions to age-old constraints in cross-border commerce and banking access.
As adoption deepens and regulatory frameworks evolve, stablecoins may yet play a transformative role in shaping how money flows in and out of Africa, offering a modern financial conduit that aligns with the continent’s digital ambition and economic realities. This shift is not just about technology, it is about new financial agency in economies where innovation often arises from necessity.
