Stablecoins Solve 6% Remittance Fees and 20% Inflation
Stablecoins are emerging as critical financial rails in Africa, addressing persistent issues of high remittance fees and currency devaluation, according to Vera Songwe, a former UN under-secretary-general. Speaking at a World Economic Forum panel in Davos, Songwe explained that traditional cross-border payments can cost users 6% of the transacted value and take days to clear. In contrast, stablecoins enable individuals and businesses to transfer funds in minutes, bypassing these costly and inefficient legacy systems.
The adoption is also a defensive measure against economic instability. Songwe noted that since the COVID-19 pandemic, inflation has exceeded 20% in approximately 12 to 15 African countries. For the continent's 650 million unbanked individuals, stablecoins accessible via a smartphone offer a vital financial safety net.
With a smartphone you have access to stablecoins, so you can save in a currency that is not exposed to fluctuations of inflation and making you poor.
— Vera Songwe, Chair, Liquidity and Sustainability Facility.
Sub-Saharan Africa's On-Chain Value Exceeds $205B
Market data confirms this trend, with a September Chainalysis report showing Sub-Saharan Africa as one of the world's fastest-growing regions for crypto adoption. The region registered over $205 billion in on-chain value from July 2024 to June 2025, a 52% increase year-over-year that positions it third globally. This growth is not limited to a niche user base; Songwe highlighted that small- and medium-sized enterprises (SMEs) are driving much of the transaction volume in key markets like Egypt, Nigeria, Ethiopia, and South Africa. This indicates stablecoins are serving as a practical tool for broad financial inclusion rather than just speculative trading.
Governments Diverge on Crypto Regulation
As crypto adoption accelerates, national governments across Africa are developing distinct regulatory frameworks. In a move to formalize the industry, Ghana's parliament passed the Virtual Asset Service Providers bill in December, legalizing cryptocurrency trading. Similarly, on January 13, Nigeria implemented new rules requiring crypto service providers to link user transactions to tax identification numbers, integrating digital asset activity into the formal economy. In contrast, other nations remain cautious. South Africa's central bank recently flagged crypto assets and stablecoins as an emerging financial stability risk, illustrating the regulatory uncertainty that still pervades parts of the continent.
