Just before Christmas, I had the opportunity to spend time in Ghana and Togo, engaging in conversations with fintech leaders, payment professionals, and financial institutions. These discussions revolved around the future of cross-border payments, but they also revealed something much deeper: the growing adoption of stablecoins across various industries in West Africa.
What struck me most was not just the pace of innovation, but the urgency behind it. In this region, financial inclusion is not a buzzword but a necessity. Stablecoins are emerging as a powerful tool to address challenges that traditional financial systems have struggled to solve across remittances, business-to-business (B2B) payments, savings and even broader commerce. They are a catalyst for economic transformation
In West Africa, stablecoins are not viewed as just speculative assets or niche financial instruments. They are practical tools solving real-world problems. During my trip, I witnessed firsthand how stablecoins are being used today to address challenges such as currency volatility, high transaction costs, and limited access to global financial systems.
Remittances are a cornerstone of Africa’s economy, with Sub-Saharan Africa projected to receive over $56 billion in remittances in 2024 (World Bank). However, the cost of sending money to the region remains the highest globally, averaging 8.37% in Q2 2024. Stablecoins address this challenge by enabling near-instant, low-cost digital cross-border payments.
In Nigeria, for example, stablecoins have become the largest share of sub-$1 million transactions, with their value approaching $3 billion in Q1 2024. This highlights their growing role in facilitating smaller, everyday transactions, including remittances (Chainalysis).
Africa’s trade ecosystem is dynamic but fragmented, with cross-border transactions often hindered by currency volatility and high transaction costs. Stablecoins are increasingly being used to settle trade payments, bypassing the friction and inefficiencies of traditional banking systems.
For example, in West Africa, stablecoins are helping businesses overcome the constraints tied to the CFA franc, which is pegged to the euro and limits monetary flexibility. In countries like Senegal and Côte d’Ivoire, stablecoins are enabling faster, cheaper trade settlements, fostering regional commerce
Additionally, stablecoins can play a critical role in high-value trade flows between Africa, the Middle East, and Asia. On-chain data from multiple blockchains reveals that stablecoins are frequently used in these transactions, highlighting their growing importance in global trade networks
In countries like Nigeria, Zimbabwe, and South Sudan, where inflation rates have soared into double or even triple digits, stablecoins are becoming a preferred store of value. By offering a stable digital currency pegged to the US dollar or other major currencies, stablecoins provide a hedge against local currency depreciation.
Between July 2023 and June 2024, Nigeria alone recorded $59 billion in crypto transactions, with stablecoins playing a significant role in preserving wealth and enabling cross-border payments (CoinGeek).
Africa’s e-commerce sector is growing rapidly, but many merchants face challenges in accepting digital payments due to limited access to banking infrastructure (both their own and their customers). Stablecoins bridge this gap by enabling merchants to accept payments directly in digital currencies, bypassing the need for expensive point-of-sale systems.
For example, in South Africa, where the fintech ecosystem is highly advanced, stablecoins are being integrated into e-commerce platforms to facilitate seamless transactions. This is particularly impactful in rural areas, where traditional banking services are scarce.
The gig economy is booming across Africa, with millions of freelancers and remote workers earning income from international clients. Stablecoins are empowering these workers by providing a fast, low-cost way to receive payments for their work.
For instance, a graphic designer in Kenya can now receive payments in USDC or another stablecoin, avoiding the high fees and delays associated with traditional banking systems. This is enabling more Africans to participate in the global digital economy.
The success of stablecoins in Africa depends on robust infrastructure and clear regulatory frameworks. During my trip to Ghana, I was encouraged to see how regulators and industry players are working together to build the foundations for stablecoin adoption.
In December 2025, the Bank of Ghana enacted the Virtual Asset Service Providers (VASP) Act, creating a comprehensive legal framework for the registration, licensing, and supervision of VASPs. This regulation ensures that stablecoin issuers and other digital asset providers operate securely and transparently (Bank of Ghana).
Just recently, the Bank of Ghana, in collaboration with the United States’ Securities and Exchange Commission (SEC), issued a public notice warning against the unauthorised advertising and promotion of virtual assets and stablecoin products. The notice explicitly directed all Virtual Asset Service Providers (VASPs), including those operating within regulatory sandboxes, to cease mass marketing or public promotions unless they have received explicit authorisation from the regulatory authorities. This move underscores the regulators’ commitment to consumer protection, market integrity, and ensuring that virtual asset activities comply with Ghana’s evolving regulatory framework. The notice also gave VASPs a 48-hour deadline to remove any unauthorised advertisements, reinforcing the Bank of Ghana’s focus on maintaining oversight and safeguarding the financial system. By providing VASPs with this type of regulatory clarity, the Bank of Ghana is signaling that digital assets can and should play a greater role in their nation’s economy (Bank of Ghana Public Notice).
Across the continent, governments are exploring new ways to integrate stablecoins into their financial systems. While central bank digital currencies (CBDCs) have pros and cons, Nigeria, for example, is piloting the cNGN stablecoin within a regulatory sandbox, while South Africa is leveraging its advanced fintech ecosystem to explore stablecoin use cases in trade and commerce. These initiatives signal an openness to the world of digital assets by forward-thinking governments.
Africa has already demonstrated its ability to leapfrog traditional systems through mobile money adoption. The next phase of this evolution involves integrating blockchain-based infrastructure into regulated financial ecosystems.
What I witnessed in Ghana and Togo reinforced a clear perspective: stablecoins are not just a tool for financial inclusion they are a catalyst for economic transformation, as I stated earlier. By addressing challenges like currency volatility, high transaction costs, and limited access to global markets, they are unlocking new opportunities across industries and enabling explosive growth in global commerce
Stablecoins are playing a pivotal role in shaping Africa’s future. With proactive regulatory approaches, dynamic fintech ecosystems, and a focus on inclusion, the continent is positioning itself as a global leader in digital finance. This transformation is not happening in isolation, it is being driven by innovative projects, such as what we are building at NGPES, which aim to integrate stablecoins into everyday financial systems to solve real-world problems. We are excited to hear from those doing business in the region to transform how money moves to and from Africa.
The transformation is already visible, and it’s only just beginning.
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