Interest in cryptocurrency across Africa is often framed as speculation. In practice, some of the clearest use cases involve payments, settlement and access to dollar-linked digital assets.
Cross-border transfers remain expensive in many corridors. World Bank data put the average cost of sending remittances to Sub-Saharan Africa at 8.37 per cent in the second quarter of 2024. The price paid by a customer varies by corridor, provider, payment method and amount.
Stablecoins can offer another route. These tokens are designed to track assets such as the US dollar and can move across blockchain networks at any time. Chainalysis data cited by the Milken Institute indicated that stablecoins represented about 43 per cent of cryptocurrency transaction volume in Sub-Saharan Africa.
Businesses may use stablecoins to settle with overseas suppliers or receive international payments. Individuals may use them for remittances or to reduce short-term exposure to a weakening local currency. These benefits are most relevant where the full transaction, including conversion into and out of local money, is faster or cheaper than alternatives.
The risks are significant. A stablecoin depends on its issuer, reserves and technical infrastructure. Users can lose money through fraud, platform failure, stolen credentials or an irreversible transfer to the wrong address. Fees can appear at several stages, including exchange spreads and cash-out charges. Regulation also differs by country and continues to change.
Stablecoins are therefore best understood as one payment tool, not a complete replacement for banks or national currencies. The useful comparison is end to end: total cost, settlement time, liquidity, legal status and the protections available if something goes wrong.
Sources
World Bank, Remittance Prices Worldwide: https://remittanceprices.worldbank.org/
Milken Institute, reporting Chainalysis data on stablecoin use: https://milkeninstitute.org/
Reuters, IMF comments on stablecoins in Nigerian cross-border transfers: https://www.reuters.com/world/africa/stablecoins-gain-nigeria-cross-border-transfers-imf-says-2026-06-16/