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Africa has long been touted as the region that most benefits from digital assets and blockchain technology. However, activity in the region has been the lowest globally, and blockchain adoption has also failed to blow up as expected.
This is now changing, and stablecoins are at the forefront of this transformation. Africans prioritize utility over speculation, and now, with stablecoins, payments, hedging against local currency depreciation and cross-border transfers are easier and faster than ever.
Africa’s stablecoin revolution
Africa’s embrace of stablecoins didn’t happen overnight; it’s been building over the past few years. With the value of most local currencies depreciating—the naira, for instance, has lost 73% of its value against the USD over the past three years—Africans have turned to stablecoins as a hedge. Millions more have been using stablecoins to send and receive funds from overseas.
A new report by the pan-African exchange Yellow Card revealed that Africa leads the stablecoin sector with a 9.3% adoption rate. The report placed Nigeria first globally with 25.9 million users, translating to 12% of the population.
“Stablecoins have become an increasingly critical tool for Africans seeking more efficient and accessible financial solutions. Nowhere is this more evident than in Nigeria,” the report stated.
“Nigeria’s leadership in stablecoin adoption and digital asset usage is not just a tech milestone; it’s a signal of how financial innovation can thrive in response to local needs.”
Ten other African nations are in the top 50, including Ethiopia, Morocco, and Kenya at 26th, 27th and 28th respectively. This milestone is even more impressive for Morocco and Egypt (ranked 44th), considering they placed bans on digital assets years ago; combined, the two North African countries have 17 million stablecoin users.
Overall, over 54 million Sub-Saharan Africans have been using stablecoins.
The report pointed out that stablecoins “are becoming a permanent fixture in Africa’s financial landscape, driven not only by individual users but increasingly by businesses and financial institutions, with international collaboration and government interest accelerating the trend.”
Yellow Card says that stablecoins are moving beyond peer-to-peer funds transfers as more businesses are now accepting them as payment, “unlocking faster transactions and deeper access to foreign currency-denominated tools, all of which fuel economic innovation and financial inclusion.”
Digital asset payments on an uptrend
Yellow Card’s report aligns with another study by Luno that found South Africans are increasingly making digital asset payments, with stablecoins the most popular. Since November last year, Luno Pay has recorded $1.1 million in digital asset payments, equating to over $150,000 every month.
“Appetite for digital currency transactions in everyday commerce is growing,” commented the country manager for South Africa, Christo de Wit.
The stablecoin economy is expanding beyond the mainstream exchanges, with new fintechs now relying on stablecoin rails to enable fast and cheap transfers across borders.
One of these is Juicyway, which launched out of stealth mode last December after a $3 million pre-seed funding round. The startup claimed it had processed $1.3 billion in 25,000 transactions while in stealth mode without a publicly available app or any marketing. It relied purely on referrals from its clients, according to its founders.
Even offshore startups are now targeting Africa with stablecoin products. Zoot, an i-gaming startup founded by former Meta (NASDAQ: META) executive Sean Ryan, says Africa is now its biggest growth opportunity.
“We are now seeing explosive growth in stablecoin adoption, and real-money gaming is a trillion-dollar market waiting to be transformed by crypto rails,” said David Pakman, the managing partner at CoinFund, one of the investors in Zoot.
But while adoption skyrockets, regulators must catch up, industry leaders say.
“Collaborations between government and fintechs will help build trust, scale solutions, and drive sustainable systems that solve real problems. Everyone from startups to regulators has a role to play,” says Nathaniel Luz, the president of the Africa Stablecoin Network.
Luz is the lead organizer of the upcoming Nigeria Stablecoin Summit, set to be held on July 24, which will bring together regulators, innovators, and enthusiasts to chart a path forward for stablecoins in Nigeria and beyond.
Gillian Darko, the Chief of Staff at Yellow Card, concurs, amplifying the need for policymakers to catch up with the rapid advancements in the stablecoin sector.
“The growing consensus is clear: regulations should support innovation, not stifle it,” she says.
Watch: Tech redefines how things are done—Africa is here for it
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