Stablecoin Demand Soars in Africa’s Powerhouses, New Data Reveals
A recent global survey has identified Nigeria and South Africa as the primary hotspots for escalating stablecoin demand, with users in these nations displaying the highest levels of optimism about the technology’s prospects. The research underscores a growing call from consumers in these key African economies for stablecoins to be integrated into everyday financial transactions and achieve much wider merchant acceptance.
While stablecoins are championed for their ability to facilitate rapid and low-cost cross-border payments, their structural reliance on the US dollar raises flags for policymakers.
With the overwhelming majority of the market, including major players like Tether and USDC, pegged directly to the greenback, their proliferation in developing nations brings concerns about sovereignty. Experts warn this trend could accelerate dollarisation and simplify the process of moving capital out of local economies.
The data comes from the Stablecoin Utility Report, a collaborative project between YouGov and the crypto sector, involving firms such as BVNK, Coinbase, and Artemis. The extensive survey gathered insights from over 4,650 individuals across 15 countries, all of whom are either current stablecoin holders or are planning to enter the market.
Presently, the utility of stablecoins remains largely confined to the digital asset sphere. A report from BCG estimates that a substantial 88% of all stablecoin transactions are executed to facilitate cryptocurrency trading. In contrast, a mere 6% are used for settling commercial transactions, highlighting a significant gap between current usage and the future aspirations of users in emerging markets.
