Stablecoin usage is accelerating across Africa as households and businesses look for cheaper cross-border payments and protection against rising living costs.
The trend reflects growing frustration with traditional remittance systems that remain slow and expensive for everyday users.
Speaking at the World Economic Forum in Davos, economist Vera Songwe highlighted how digital dollar-linked tokens are filling gaps left by weak local currencies.
Stablecoins are stepping in where remittance systems are costly and local currencies are under pressure.
Vera Songwe said.
Songwe noted that remittances now contribute more to many African economies than foreign aid flows.
Despite their importance, sending money across borders in Africa often costs around six dollars for every one hundred dollars transferred.
Settlement through conventional channels can also take several days, creating cash flow problems for families and small businesses.
Stablecoins allow funds to move within minutes, reducing both time delays and transaction costs.
Faster settlement helps households cover daily expenses and enables small firms to manage working capital more efficiently.
Inflation since the COVID-19 pandemic has further pushed users towards stablecoins as a store of value.
Prices have climbed by more than 20 percent in roughly 12 to 15 African countries, weakening purchasing power and savings.
Holding stablecoins pegged to major currencies offers a hedge against rapid depreciation in local money.
Access to a mobile phone is often enough for users to participate in this digital financial system.
Songwe said adoption is strongest in Egypt, Nigeria, Ethiopia, and South Africa due to inflation, currency pressure, and capital controls.
Usage patterns suggest stablecoins are being used for everyday commerce rather than short-term speculation.
Songwe currently chairs the Liquidity and Sustainability Facility and serves as a senior fellow at the Brookings Institution.
She previously held roles as a UN under-secretary-general and led the UN Economic Commission for Africa.
Independent data supports the rise in crypto activity across the continent.
A September report from Chainalysis ranked Sub-Saharan Africa among the fastest-growing crypto regions worldwide.
On-chain value received in the region exceeded $205 billion between July 2024 and June 2025.
This marked a year-on-year increase of roughly 52 percent, placing the region third globally.
Regulatory responses across Africa remain uneven as adoption expands.
South Africa’s central bank has warned that crypto assets and stablecoins could pose financial stability risks.
Nigeria introduced new rules in January requiring crypto platforms to link transactions to tax identification numbers.
The move aims to bring digital asset activity into the formal tax system.
Ghana has taken a more permissive approach by legalising crypto trading through legislation passed in December.
The framework supports innovation while giving authorities tools to manage risk.
Bank of Ghana Governor Johnson Asiama said.