• About Us
  • Careers
  • Contact
No Result
View All Result
Sunday, August 24, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home Markets

The Growing Role of Stablecoins in Africa’s Crypto Economy

22 October 2024
in Markets, Stablecoins
Reading Time: 7 mins read
121 3
The Growing Role of Stablecoins in Africa’s Crypto Economy

Source: Brave New Coin

Contents

Toggle
  • FX Shortages, Inflation, Currency Devaluation, and the Turn to Stablecoins
  • The Future of Stablecoins in Africa

Stablecoins have rapidly become a fundamental part of Africa’s cryptocurrency landscape, accounting for 43% of the region’s total transaction volume, according to a report by Chainalysis. Dollar-pegged Tether (USDT) and USD Coin (USDC) are the most popular on the continent, and they are increasingly used for value storage, remittances, and international trade by both individuals and businesses. 

Below, we explore what is driving this increasing

FX Shortages, Inflation, Currency Devaluation, and the Turn to Stablecoins

A major driver of stablecoin adoption in Africa is the widespread shortage of foreign exchange (FX). Chris Maurice, CEO and Co-Founder of Yellow Card, pointed out that nearly 70% of African nations face FX shortages which restricts access to U.S. dollars, the defunct, global currency. This has become a critical issue for businesses in these countries, forcing them to seek alternative solutions.

For example, in Nigeria, despite its oil wealth, years of economic mismanagement have led to a severe dollar shortage. Under the leadership of President Bola Tinubu, efforts to loosen foreign exchange restrictions in 2023 backfired, causing the naira to plummet by 70% in 2024. Inflation skyrocketed to 33.2% in March 2024, creating a cost-of-living crisis that triggered widespread protests.

Nigeria’s June Inflation. Source: Stears
 The naira’s continuous depreciation, reaching over 1,650 naira to the dollar by October, pushed businesses and individuals to adopt stablecoins. Nigeria has since become Africa’s largest stablecoin market; over $21.8 billion in transactions has been recorded in 2024 alone.
Total stablecoins received by country 2023 – 2024. Source: Chainalysis
A similar story unfolded in Zambia, where the kwacha fell to an all-time low of 27.30 against the U.S. dollar in May 2024. The nation’s economy, already strained by a drought and its effects on agriculture and electricity, saw inflation rise for 15 consecutive months, peaking at 15.6% by September. With limited access to foreign currency, businesses turned to stablecoins for transactions, leading to $2.2 billion in stablecoin transactions in 2024.
Zambia’s Inflation Rate 2024. Source: Trading Economics

In Ethiopia, the government floated the birr in July 2024, causing a sharp 30% devaluation against the U.S. dollar. While this move aimed to attract foreign investment and secure loans from the International Monetary Fund (IMF), it also increased stablecoin adoption as businesses sought to hedge against currency volatility. Stablecoin transactions in Ethiopia reached $2.0 billion in 2024, with dollar-pegged assets becoming essential tools for preserving financial stability.

Inflation has been another key factor driving the growth of stablecoins in Africa. In Ghana, the cedi depreciated by nearly 20% between March and July 2024, exacerbating the country’s inflation crisis. Annual consumer inflation reached 21.5% in September 2024, reversing months of declining rates. Faced with rising food prices and a weakening currency, many Ghanaians turned to stablecoins; the country recorderd over $3.9 billion in transactions.

Ghana’s Inflation Rate 2024. Source: Trading Economics

Kenya has also experienced significant currency devaluation, with the shilling losing ground against major currencies like the U.S. dollar, euro, and pound sterling. Although inflation eased to 4.32% by mid-2024, concerns about a potential default on the country’s eurobond debt continued to weigh on the shilling. This economic instability fueled the adoption of stablecoins, with Kenya reporting $3.3 billion in transactions in 2024 as businesses and individuals sought alternatives to preserve their wealth.

On the other hand, South Africa’s rand has been relatively stable compared to other African currencies in 2024. Despite facing pressure from a strong U.S. dollar, the rand has benefitted from improved power supply and growing foreign exchange reserves. However, even in South Africa, stablecoins have gained traction, with $13.5 billion in transactions recorded in 2024. This highlights how even relatively stable economies are turning to stablecoins for international transactions and as a hedge against future inflation risks.

South Africa’s Inflation Rate 2024. Source: Trading Economics

The Future of Stablecoins in Africa

The reliance on stablecoins in Africa will likely continue growing. With many African nations needing to convert currencies for international transactions, stablecoins offer a more efficient, faster, and cost-effective solution. Beyond that, they are bringing more people into the financial system. For the unbanked population, especially those using mobile phones for daily transactions, stablecoins provide a practical alternative to traditional banking. Given the widespread use of mobile payment platforms, stablecoins could become the preferred method for storing, transferring, and spending money across the continent.

However, there are challenges ahead. Governments on the continent have shown that they fear that stablecoins could facilitate capital flight, tax avoidance, and illicit activities. And they have responded in different ways. For example, Nigeria initially banned cryptocurrencies but later introduced regulations, including taxation guidelines, to control and benefit from their usage. Others, like Ghana, introduced comprehensive rules to “foster innovation while effectively managing risks associated with digital assets.”

These varied but reactive approaches mean stablecoin issuers must stay ahead of evolving regulations while maintaining robust financial reserves and governance standards. As governments and the industry adapt, the future of stablecoins in Africa will depend on striking the right balance between innovation and regulation.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
If you would like to read more market analyses like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto  portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share72Tweet45Share13
Olayinka Sodiq

Olayinka Sodiq

Olayinka Sodiq is a seasoned crypto and blockchain writer with over 5 years experience in the fintech industry. With a deep passion for decentralized technology, Olayinka crafts insightful and engaging content that demystifies complex blockchain concepts for a global audience. His work has been featured in leading publications (Business Insider Africa, Tradingbeasts.com, and The Trading Bible), where he is known for blending technical expertise with a clear, accessible writing style. Olayinka holds a degree in English and is a sought-after speaker at blockchain conferences worldwide

Related Posts

Your Weekend Crypto Roundup | August 2025 (Week 4)
Markets

Your Weekend Crypto Roundup | August 2025 (Week 4)

22 August 2025
source: x.com
Stablecoins

Ripple, SBI to Launch RLUSD Stablecoin Distribution in Japan by 2026

22 August 2025
source: blocktelegraph.io
Stablecoins

WSPN Moves to Standardize Stablecoin Use in Enterprise Finance

21 August 2025
source: theblock.co
Stablecoins

Trump-Backed World Liberty Mints $205M in Stablecoin Following Fed Governor’s Praise

21 August 2025

Editors Picks

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

byOlayinka Sodiq
21 July 2025
0

Which Pays Better Right Now: DeFi’s High-Yield Pairs or Traditional Finance’s Cash Vehicles?

Which Pays Better Right Now: DeFi’s High-Yield Pairs or Traditional Finance’s Cash Vehicles?

byOlayinka Sodiq
6 July 2025
0

The Future of Crypto Could Be Institutional—And That’s Not a Bad Thing

The Future of Crypto Could Be Institutional—And That’s Not a Bad Thing

byOlajumoke Oyaleke
30 June 2025
0

What Is a Rebase Token and How Does It Work?

What Is a Rebase Token and How Does It Work?

byOlajumoke Oyaleke
28 June 2025
0

Smart Contracts on Ethereum, Solana, vs. Other Blockchains

Smart Contracts on Ethereum, Solana, vs. Other Blockchains

byOlajumoke Oyaleke
26 June 2025
0

Read More

Chain of Thoughts

What Happens When AI Gets a Wallet?

What Happens When AI Gets a Wallet?

byOlu Omoyele
31 July 2025
0

...

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Markets Update

Your Weekend Crypto Roundup | August 2025 (Week 4)

2 days ago

SUI Ecosystem: Price Prediction, Market Dynamics, and Strategic Developments

4 days ago

How Much Ethereum Do Public Companies Actually Own?

5 days ago

Your Weekend Crypto Roundup | August 2025 (Week 3)

1 week ago

Ripple vs. SEC Nears Final Countdown: Will August 15 End Crypto’s Longest Court Battle?

2 weeks ago

Cardano Price Prediction 2025–2030: Decentralized Governance, Technical Upgrades, and Investment Outlook

2 weeks ago
Read More

Events

CBDC Conference
CBDC Conference
9 Sep 25
Nassau

Spotlight

All about Ethereum
All about Algorand
All about Bitcoin
All about Gora

Press Releases

Ethereum Breaks $4,750 Support As Pepeto Crosses $6,287,248 in Presale Funding

bychainwire
23 August 2025
0

MetaWin Announces “MetaWin Create” – Free AI Tools for All MetaWinners NFT Holders

bychainwire
22 August 2025
0

ESCAPE Presale Live on Ethereum With $280K Raised, Hacken Audited and SolidProof KYC Verified

bychainwire
21 August 2025
0

Hyra Network Wins Prestigious Chairman’s Award 2025 at WITSA Global AI Summit

bychainwire
21 August 2025
0

OpenServ names Joey Kheireddine Head of Blockchain, joining from Eliza Labs (formerly AI16z)

bychainwire
20 August 2025
0

Read More

ADVERTISING

ABOUT

TEAM

CAREERS

CONTACT

TERMS & CONDITIONS

PRIVACY POLICY

© Copyright 2025 DeFi Planet

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.

Add New Playlist

No Result
View All Result
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

© Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00