For many years, countries across Africa have been quietly leading the race when it comes to the practical adoption of cryptocurrency.
From cross-border payments to savings, everyday users on the continent have been putting crypto to real work. And yet, when most people think about crypto in Africa, they imagine young people trading bitcoin or building Web3 startups. That’s part of the story. The full story lies in what is driving this movement, and the answer is far more practical: stablecoins.
Stablecoins are a special kind of cryptocurrency pegged to stable assets like the US dollar, offering predictability that volatile cryptocurrencies cannot. Accessible via mobile phone, stablecoins allow people to store and transfer value that holds. They offer something rare in many parts of the continent: predictability.
Freelancers get paid in USDC instead of waiting days for bank wires. Traders send USDT across borders without losing money to hidden foreign exchange fees. Informal businesses protect income from local currency swings by holding earnings in digital dollars. These practical uses are driven by real needs, speed, safety and lower costs.
Stablecoins are a longstanding solution, offering a faster, safer and often lower-cost complement to traditional systems, especially where access is limited or inefficiencies persist. This is why regulators and policymakers in Africa should urgently focus not just on risks, but on their utility. To scale sustainably, the regulatory environment must evolve alongside this innovation, developing clear, proportional and purpose-built licensing frameworks that safeguard users while allowing innovation to thrive.
We’ve seen how stablecoins improve financial access, especially in underserved and informal markets. This isn’t about replacing traditional systems but extending the financial toolkit. Crypto, including stablecoins, helps diversify portfolios and boost economic resilience by offering users more choices.
Widely used
Stablecoins are widely used for cross-border transfers, providing an alternative to traditional remittance channels that are often slow, expensive and lack transparency. Problems like poor reporting, informal markets and limited data make it hard to track funds properly. Stablecoins offer a faster, cheaper and more accessible alternative. But to unlock their full potential, African regulators need a balanced approach, one that starts with monitoring and understanding these new tools before introducing clear, tailored rules instead of relying on outdated frameworks.
Most stablecoins today are pegged to the US dollar, but many African countries are trying to reduce their dependency on the dollar, which can undermine local currencies. If stablecoins are to truly strengthen African economies, we need local stablecoins pegged to African currencies. Developers and businesses across the continent must step up to build these solutions for their markets, creating financial tools that serve local needs as much as global ones.
Read: Bitcoin payments a step closer to mainstream adoption in SA
The recent passing of the US Genius Act, which confirms that fully backed stablecoins are not securities, is important because it clears up major regulatory confusion. While the legislation is American-focused, the ripple effects will make it easier for stablecoins to be adopted globally.
In South Africa, for example, crypto is not classified as “money” under current case law, meaning exchange controls do not automatically apply as they do to traditional currencies. This is a chance for African regulators to rethink restrictive models and adopt proportionate frameworks that encourage innovation while protecting users. The history of why exchange controls were introduced should be revisited so that we accurately recalibrate their purpose.
The data is staggering: according to a FiftyOne study, more than $248-billion in stablecoin circulates globally, up 60% year-to-date, and more than $2-trillion moving through the global economy each month. While 90% of stablecoin transactions are still executed by proprietary traders, hedge funds and market makers, stablecoins have quietly become the backbone of a rapidly evolving global financial landscape.
Between July 2023 and June 2024, sub-Saharan Africa processed more than $54-billion in stablecoin transactions, making up 43% of all crypto activity in the region. In South Africa, Ghana and Kenya, we’re seeing stablecoins dominate peer-to-peer trading. People aren’t using them to speculate; they’re using them to survive, save and grow.
Read: Crypto industry shoots for mainstream adoption
Africa doesn’t need a crypto revolution. It already has one, and it runs on stablecoins. But to scale this impact sustainably, regulators must move beyond risk-focused debates to enabling solutions. Central banks also stand to benefit from allowing and potentially adopting stablecoins into their monetary policy ecosystem.
Africa should lead not just in adoption, but in shaping regulations and creating local innovations that the rest of the world will follow. The world is finally catching up. Africa shouldn’t wait.
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- The author, Larry Cooke, is head of legal for Africa at Binance