Author: Will Awang

The World is Flat

Our world has transitioned from isolated local economies to a tightly interconnected global system through the global linking of the Internet, and Thomas L. Friedman thus said "The World is Flat." Although the Internet has made information flow free and globalized, the infrastructure that supports the flow of funds still mainly relies on frameworks from before the internet era,the flow of money/value remains difficult and expensive.

Although some regional financial innovations can accelerate the flow of funds, the financial tracks supporting Africa have not been synchronized. Traditional financial systems have not provided stability, accessibility, and efficiency, leading people to face the risks of inflation and financial uncertainty, limited control over savings, and difficulty accessing the global market.But just as the region skipped the desktop computer era and directly entered the mobile age, Africa is now ready to move beyond outdated banking infrastructure and actively embrace stablecoins.

We can no longer limit our vision to stablecoin use cases in native crypto markets. We should view stablecoins' real-world use cases in non-crypto-native scenarios from a brand-new perspective. Stablecoins have become an essential part of the crypto narrative in sub-Saharan Africa, serving as a popular hedge against long-term inflation and currency depreciation.

"Stablecoins built on blockchain networks are the answer. This is the first time we truly have the opportunity to change money, just like email changed communication: making it open, instant, and borderless. This is a WhatsApp moment for money/value, built on a global network through blockchain and stablecoins, benefiting everyone." —— Chris Dixon, a16z 

One, The Stablecoin Revolution in AfricaQuietly

Africa's mobile money penetration rate is the highest in the world and deeply ingrained,which proves the demand for alternative financial solutions. Thus, the emergence of stablecoins is natural, providing a way to seamlessly access financial services with just a phone. Stablecoins can further develop on this basis, expanding financial inclusion and enabling more efficient borderless transactions.

According to Chainalysis data,Africa is the fastest-growing region for cryptocurrency adoption, with a year-on-year growth rate of 45% from 2022-2023 to 2023-2024, exceeding other emerging markets such as Latin America's 42.5%. This rapid growth highlights the huge potential of stablecoin applications, especially in Africa where bank penetration rates remain among the lowest globally.

"Stablecoins have already become a reality in cross-border payments in Africa... the rest of the world is just catching up." —— Zekarias Amsalu, Co-Founder of Africa Fintech Summit

One of the main drivers of stablecoin adoption in Africa is the foreign exchange (FX) crises faced by many countries.Approximately 70% of African countries face foreign exchange shortages, making it difficult for businesses to obtain the dollars they need for operations.In countries like Nigeria, the local currency, the Naira (NGN), has significantly depreciated, and stablecoins provide a much-needed alternative."The banks don't have dollars, the government doesn't have dollars, and even if they do, they won't give them to you." —— Chris Maurice, CEO & Co-founder of Yellow Card

Over the past three years, stablecoins have become an indispensable part of Africa's financial system, providing a reliable way to store value, make cross-border remittances, and trade without relying on volatile and unstable local currencies. Dollar-backed stablecoins like USDT and USDC are filling the gap left by traditional finance, allowing people in dollar-scarce economies to access stable value storage.

From remittances, retail savings to B2B trade and cross-border payments,stablecoins are addressing issues of dollar access, instant settlement, and FX inefficiencies in Africa, which are particularly prominent in markets with inadequate traditional payment channels.

Africa is the most dynamic growth market globally, with the fastest population growth, the youngest median age, and nine of the 20 fastest-growing economies. Africa has 400 million mobile money users, and the scale of digital finance adoption is already significant.Stablecoins are the next leap, transforming smartphones into globally connected dollar accounts.Looking ahead, in ten years, more people in Africa will have crypto wallets and use stablecoins for daily transactions rather than traditional bank accounts.

"You don't need to educate users; life will force them to use it." —— Sky, Co-founder of ROZO

Two,Projects Driving the Future Adoption of Stablecoins

Chuk from Paxos has mapped out an ecosystem covering payment channels, use cases, and companies to show the depth of the transformation already underway. While many market maps show the global stablecoin ecosystem, few focus on Africa's role in shaping its financial future. Therefore, we created this map to showcase the builders and use cases redefining Africa's financial infrastructure.

(Mobile Money to Global Money: Africa’s Stablecoin Revolution, Chuk @ Paxos)

In the past three years of investment in the African market, we have seen more and more companies building around stablecoins, each playing a key role in driving the adoption and innovation of stablecoins. The following lists some of the most noteworthy participants, along with key growth and funding data highlighting the rapid expansion of the industry.

• Yellow Card: One of Africa's leading cryptocurrency exchanges, operating in 20 countries across the continent. Africa's largest and first licensed stablecoin platform. Yellow Card allows users to seamlessly convert fiat to cryptocurrency and vice versa. In 2024, the platform's annual trading volume doubled from $1.5 billion in 2023 to $3 billion.

• Conduit: Provides stablecoin payment services for importers and exporters in Africa and Latin America. Annualized TPV will surge from $5 billion in 2023 to $10 billion in 2024.

• Juicyway: A startup based in Lagos using stablecoins to facilitate cross-border payments. Since 2021, Juicyway has processed a total of $1.3 billion in payments.

• Bridge: Founded in 2022, it was acquired by Stripe for $1.1 billion two years later. Bridge enhanced the global stablecoin payment infrastructure. It serves most African payment companies and facilitates stablecoin payments between Europe, the United States, and Asia.

• Jia: A blockchain-based fintech company providing loans to SMEs in emerging markets. In 2024, Jia's cumulative loan disbursement exceeded $10 million, up from $2 million in the previous year, with an internal rate of return (IRR) of 24% and a default rate of 0.14%.

• Onboard: A global P2P trading protocol that allows anyone anywhere to access on-chain finance. Nestcoin raised $1.9 million in its latest funding round to drive product growth.

• KotaniPay: A stablecoin settlement solution for businesses and users. KotaniPay is developing an API product that connects blockchain with local payment channels. In 2023, KotaniPay secured a $2 million seed round.

• Accrue: Building a USD stablecoin agent network to expand cross-border payment infrastructure. Raised $1.58 million in a seed round to scale operations.

• Convexity: Developed Nigeria's first regulated stablecoin cNGN. The company has been working with the Central Bank of Nigeria since 2021 and received a provisional license from the Nigerian Securities and Exchange Commission (SEC) in 2024.

• Honeycoin: A platform for cross-border remittances, bill payments, purchasing airtime, and online consumption. GTV surged from $40 million in the previous quarter to $500 million in Q4 2024.

• Paycrest: A decentralized liquidity protocol supporting instant, low-cost payments backed by stablecoins. Additionally, they developed Zap, a DApp for seamless crypto-to-fiat payments, and won the Base 2024 Onchain Summer Buildathon. Now, Zap is ready for production in the form of Noblocks, the first interface supported by a distributed liquidity node network that enables instant decentralized payments with any bank or mobile wallet.

• Haraka: A microcredit protocol driven by stablecoins, targeting underserved entrepreneurs in emerging markets. Haraka uses a reputation-based credit scoring system and has demonstrated early commercial validation through partnerships with Grameen Bank and Mercy Corps.

Many of these companies have experienced significant growth in the past two years and are at the forefront of stablecoin innovation in Africa.

For the global fintech community, the question is not whether stablecoins will go mainstream. The question is what we can learn from where stablecoins have already taken off — Africa.

Three, Stablecoins Are Solving Daily Problems in Africa

"In Africa, it's not a choice between stablecoins and other financial tools. It's stablecoins or nothing." —— Samora Kariuki, Frontier Fintech

Stablecoins are solving real problems across Africa. From asset preservation to driving trade,the adoption of stablecoins is out of necessity, not for trading and speculation.Here are the most critical use cases based on real needs, along with companies building support for these use cases.

3.1 Daily Tools: Savings, Consumption, and Credit

In many African countries, high inflation, currency depreciation, and limited access to banking services make establishing financial security extremely difficult.Stablecoins offer a more reliable path, serving as a dollar-denominated savings, transaction, and credit tool.

A. Asset Preservation

In regions where access to dollar banking services is difficult, inflation is high, and official payment networks are costly or unreliable, stablecoins are gaining popularity. Africa's situation reflects these conditions, making stablecoins a key tool for protecting savings and maintaining purchasing power, especially in economies where local currencies are continuously depreciating.

Currency depreciation is one of the biggest financial challenges facing African markets. For example, despite Kenya's GDP doubling from 2008 to 2024, the Kenyan shilling has depreciated by 50% against the U.S. dollar since 2021. The contradiction is evident: economic growth is rising, but confidence in the local currency has not increased. Similarly, in the past 18 months, inflation and the depreciation of the naira have been key drivers of stablecoin adoption in Nigeria. The naira hit a historic low in February 2024 and has struggled ever since, highlighting the urgent need for stable alternatives.

(Stablecoins: Leapfrogging Africa’s Financial System, Ayush Ghiya and Uchenna Edeoga)

As local currencies continue to depreciate, stablecoins are becoming the preferred hedge, offering a more reliable means of wealth transfer and storage. Unlike cash or gold, stablecoins provide a fully digital, widely available payment channel without relying on banks, payment networks, or central banks. They not only hedge against currency fluctuations but also offer higher yields than traditional savings accounts, making them an attractive option for Africans looking to preserve and grow their wealth. Traditional banks offer low interest rates, while stablecoin savings platforms leverage decentralized finance (DeFi) and cryptocurrency lending models to create higher returns.

Currently, dollar-backed stablecoins are the preferred choice for users in emerging markets. In most parts of Africa, USDT (based on Tron) has become the de facto digital dollar. Most users obtain stablecoins through centralized custodial apps like Binance, prioritizing speed and liquidity over Western concerns about reserves or transparency.

For those facing foreign exchange rationing and 30% inflation, what matters most is that it works. Stablecoins help users preserve assets in remote areas and save in stable currencies.According to World Bank data, as of 2021, only 49% of Africans had bank accounts,but 400 million people used mobile payments, and stablecoins can meet user needs where banks cannot reach.

Platforms like Fonbnk can enable instant top-ups to USDT on basic phones, while Accrue provides local community agent networks for cash withdrawals and deposits of stablecoins. The Nigerian crypto platform Busha Earn allows users to save stablecoins at an annual yield of up to 7.5%, far higher than most Nigerian banks. Sub-Saharan Africa leads the world in DeFi app usage, likely due to the growing demand for convenient financial services. This indicates that stablecoins are not just an alternative, but crucial for financial stability in regions where traditional systems fail.

This makes stablecoin savings an attractive option—not only because of higher interest rates, but also because users gain value beyond hedging against currency depreciation. These factors together make stablecoins a powerful tool for preserving and increasing wealth.

"By converting everyday pre-paid payments—mobile data, bank transfers, and mobile payments—into USDT, Fonbnk acts as a stablecoin settlement layer, providing a hedge against currency depreciation for 400 million unbanked and underbanked Africans, and opening up new avenues for savings and credit beyond traditional banks." —— Chris Duffus, Founder & CEO, Fonbnk

B. Expanding Access to Credit

There is a $33 billion credit gap for small and medium enterprises (MSMEs) in Africa, and lack of banking services has led to an underdeveloped SME credit system, leaving millions of individuals and small businesses excluded from banks. In these markets, small businesses are often overlooked by traditional financial institutions due to high collateral requirements, lengthy documentation processes, and lack of credit history. Difficulty in obtaining affordable upfront capital limits many MSMEs from maintaining daily operations and promoting economic growth.

In the Web3 space, stablecoin-based lending protocols have shown great potential in addressing this issue over the past three years. However, most of these solutions still require excessively high collateral, typically around 150% of crypto assets as collateral, effectively excluding MSMEs in emerging markets. While low-collateral lending protocols like Goldfinch have emerged, they mainly act as alternative debt providers for fintech lenders, rather than directly serving physical small businesses.

Recently, two companies, Jia (using decentralized finance to provide factoring, supply chain financing, and other loans) and Haraka (using an innovative social credit system), have actively worked to disrupt this field and seize market opportunities in Africa. These companies provide blockchain-based loans to small businesses and empower responsible borrowers, allowing them to accumulate wealth and drive economic development in their communities.

Bringing real-world economic activity onto the chain benefits both investors and borrowers. Investors can democratically access actual returns, while borrowers can gain blockchain liquidity and own assets as a way to create long-term wealth for themselves and their communities. The use of blockchain also reduces the high transaction costs common in private credit markets (often passed on to end borrowers) and allows borrowers to build on-chain credit records, thereby establishing a reputation over time.

These tools give users more control over their funds and unlock financial choices previously out of reach.

3.2 Cross-Border Flows: Trade, Fund Management, and Remittances

As Stripe CEO Patrick Collison said, stablecoins are the "room-temperature superconductors of financial services." They will allow businesses to seek new opportunities that were previously too burdensome for existing payment channels or traditional gatekeepers. This is particularly evident in cross-border payments, where traditional systems are slow, costly, and rely on multiple intermediaries. High fees and long delays make transactions complex — especially in Africa, where the average remittance rate is about 8%, and financial infrastructure is often limited or missing.

Cross-border payments are the backbone of Africa's daily economy, from importing goods, sending remittances, repatriating profits, and paying freelancers. However, the payment channels supporting these fund flows remain fragile:3-5 days delay, 5-10% fees, and subject to foreign exchange rationing.Stablecoins have changed this, offering a solution to these issues, enabling real-time, low-cost transfers without requiring large capital reserves or bank intermediaries.

(Stablecoins: Leapfrogging Africa’s Financial System, Ayush Ghiya and Uchenna Edeoga)

In the scenario depicted in the above image, a Ugandan user wants to transfer funds to a Nigerian user. If the transfer is done via the SWIFT network, since the two countries do not have a direct bank network, the user may have to route through a middleman in the United States. But once stablecoins are used for the payment network, the user does not need to go through multiple intermediaries. Instead, they can convert the local currency into a stablecoin and send it directly to the Nigerian user, who then converts it back into the Nigerian Naira and gets the funds locally.

This process eliminates the inefficiencies of SWIFT and netting settlement models, as the transfer is directly conducted through exchanges or blockchain wallets connected to currency conversion and deposit service providers. These service providers integrate with local payment systems to achieve seamless conversion between stablecoins and local currencies.

Recently, Stripe acquired Bridge (a stablecoin API provider) for $1.1 billion, just two years after Bridge was founded in 2022, aiming to enhance its global stablecoin payment network. Africa is Bridge's major market, providing stablecoin payment services for most African payment companies operating in Europe, the United States, and Asia. This highlights the growing demand for stablecoin infrastructure in the market and the rapid expansion of key players in the sector.

Although Bridge has laid the foundation for the orchestration and issuance of stablecoins, there is still a lot of work to be done in this sub-sector. Cross-border payments remain a huge opportunity, but there are also some key issues that need to be addressed.

A. Trade and B2B Payments

China is Africa's largest trading partner, with Africa's imports from China reaching $176 billion in 2023, creating a $66.6 billion trade deficit. This creates a continuous demand for dollar payments, which stablecoins meet efficiently and with high liquidity. Due to their deep liquidity and widespread exchange support, USDT (based on Tron) has become the preferred channel for many commercial payments.

"Stablecoins are the new cornerstone of cross-border payments in Africa. Enterprises use Conduit to settle payments almost instantly, reducing working capital, maintaining liquidity, and avoiding currency fluctuations." —— Eric Wainaina, General Manager, Africa at Conduit

"Stablecoins have completely transformed the situation for importers who couldn't get dollars through banks — now their businesses are thriving." —— Suleiman Murunga, Director, MUDA

Internal trade payments within the African continent: Internal trade within the African continent accounts for only 15% of Africa's total imports and exports, far below the 54% in North America, 60% in Asia, and 70% in the EU. The main reason for this imbalance is the lack of direct currency exchange infrastructure — most transactions require converting local currency into dollars, pounds, or euros, and then into other African currencies. This inefficiency adds an unnecessary $5 billion in costs to intra-African trade annually. Resolving this issue is crucial for achieving smooth trade across the entire African continent.

Repatriation of funds: Large multinational companies selling goods and services in Africa can use stablecoins to repatriate funds to their home countries. With stablecoin infrastructure, the settlement time is less than 30 minutes, whereas traditional payment methods take 2-3 days.

B. Remittances and Global Payments

Just as stablecoins can facilitate outward payments, they can also bring funds into the African continent. This includes remittances, salary payments, and income for freelancers.

Remittances are one of the most common cross-border payment needs, but traditional remittance methods make them costly. In 2023, global remittance flows reached $883 billion, with the costs disproportionately affecting low-income users. Today, sending $200 from the U.S. to Nigeria via stablecoins costs less than $0.01, compared to $7.60 using traditional methods. Reducing these costs on a large scale remains a pressing priority.

"Sub-Saharan Africa remains the region with the highest remittance costs globally, with an average cost of 8.37% in 2024. However, many overseas Africans are unaware that they can now send money home faster and cheaper using stablecoins." —— Xino Zee, Lead at Send Africa

Payments: For gig economy freelancers, cross-border small payments remain costly and inefficient. In places like Kenya, some people even rent PayPal accounts because it's too difficult to set up their own account — highlighting how access barriers exacerbate the already high costs of small international payments. The emergence of stablecoins can simplify the payment process, significantly benefiting these workers. Additionally, multinational companies can efficiently manage cash flow using stablecoins and seamlessly pay employees, customers, or suppliers worldwide.

Global aid: Currently, only about 40 cents of every dollar donated to global aid organizations ultimately reaches the intended recipients, with the rest going to multiple intermediaries. We clearly need a more efficient, low-cost system to provide global aid transparently and seamlessly.

A batch of new companies are rebuilding Africa's cross-border payment infrastructure around stablecoins. As exchanges, Yellow Card, Busha, VALR, and Luno provide liquidity for local deposit and withdrawal currencies. Conduit, Honeycoin, Shiga Digital, and Juicyway support commercial trade, collections, and payments, while Sling and Send drive consumer P2P payments.

These builders are quietly moving billions. Many companies do not directly sell "stablecoins," but insteadsell cheaper remittances, operational capital efficiency, and currency stability.

Four, Opportunities for Builders in Africa

"In Africa, if you kick a tree, three fintech companies using stablecoins will fall down... the strongest teams we support now have a single channel or industry liquidity — stablecoins are just hidden behind the scenes of fintech companies." —— Brenton Naicker, Principal & Head of Growth (Africa) at CV VC

4.1 Four Levers to Create Value

The first wave of stablecoin growth focused on infrastructure: on-ramps, channel liquidity, and basic wallet functions. This layer is rapidly becoming crowded.The next phase is differentiation: who has users, who defines standards, and who captures profit in real use cases.Here are four levers that shape value creation across the entire African continent:

A. Distribution: Winning Users

Control over user interfaces and customer relationships determines the flow of transaction volume. The strongest companies are not leading with stablecoin infrastructure, but rather solving payment, lending, or fund management issues, hiding stablecoins behind the scenes.

B. Liquidity: Controlling Both Ends of the Channel

Local foreign exchange liquidity is uneven and hard to replicate. Teams that can manage both the start and end of liquidity can offer better pricing, internal netting, and lower fees. Liquidity accumulates, forming a defensive moat.

C. Regulation: Shaping Rules Before They Are Formed

In competitive markets like Nigeria and Kenya, perfect execution is crucial. But in less developed markets like Malawi or Cape Verde, there is less competition, and pioneers can collaborate with regulators to define the rules. Early trust-building investors may win long-term policy consistency.

"Dollar liquidity has been tokenized on-chain across most of Africa. Policymakers should prioritize tokenizing local currencies on-chain to accelerate economic sovereignty and trade." —— Wale Ayeni, Managing Partner of Helios Digital Ventures

D. Verticals: Customizing for Specific Workflows

Whether it's agriculture (e.g., Agridex), logistics, education, or global aid, each industry has its own workflows, user expectations, compliance requirements, and payment rhythms. Specialized builders can use industry jargon, connect to existing tools, and solve problems that generalists cannot. Once trust is gained, they can add additional financial services such as credit, fund management, or insurance. Focus brings user retention and profitability.

4.2 Major Crypto Economies in Africa

(State of Crypto Report 2024: New data on swing states, stablecoins, AI, builder energy, and more)

A. Nigeria — The Epicenter of Crypto Activity in Africa

Driven by a booming fintech industry and severe economic challenges, Nigeria, Africa's most populous country, is leading in the adoption of stablecoins. In recent years, Nigeria's economy has faced a series of shocks. Low oil prices (a key driver of its export economy), coupled with the impact of the pandemic and supply chain disruptions, have led to prolonged financial uncertainty. Nigeria has the highest inflation rate in Africa, even higher than the entire Francophone region. As the naira continues to depreciate, stablecoins have become an important tool for Nigerians seeking to preserve their wealth and conduct global transactions.

In Chainalysis's global crypto adoption index, the country ranks second overall. Between July 2023 and June 2024, the country received approximately $59 billion in cryptocurrency. Nigeria is also one of the major markets for mobile crypto wallet adoption, second only to the United States. The country is actively pursuing regulatory clarity, including through incubation programs, and the use of stablecoins in daily transactions (such as bill payments and retail purchases) has seen significant growth.

(Sub-Saharan Africa: Nigeria Takes #2 Spot in Global Adoption, South Africa Grows Crypto-TradFi Nexus, Chainalysis)

Like Ethiopia, Ghana, and South Africa, stablecoins are also a significant component of Nigeria's crypto economy, accounting for about 40% of all stablecoin inflows in the region — the highest in sub-Saharan Africa.Nigerian users report that they have a higher transaction frequency and a deeper understanding of stablecoins as a financial tool, rather than just an asset class.

Nigeria's crypto activity is mainly driven by small retail and professional-scale transactions, with about 85% of transfers valued below $10 million. Due to the inefficiency and high cost of traditional remittance channels, many Nigerians rely on stablecoins for cross-border remittances. Sodipo noted, " Cross-border remittances are the main use case for stablecoins in Nigeria. It is faster and more affordable."

"Daily activities such as bill payments, mobile top-ups, and retail shopping are increasingly driven by cryptocurrencies. People are beginning to see the practicality of cryptocurrencies in real-world scenarios, especially in daily transactions, which differs from the previous perception of cryptocurrencies as a quick-rich scheme." —— Moyo Sodipo, CEO & Co-founder of Busha, Nigerian cryptocurrency exchange

In addition to traditional financial systems,DeFi platforms also provide Nigerians with new opportunities to earn interest, take loans, and participate in decentralized trading.Sodipo said, "DeFi is a key area of growth, as users are exploring ways to maximize returns and access financial services they might otherwise not be able to obtain."

B. South Africa - TradFi institutions drive market development

As Africa's largest economy, South Africa has positioned itself as one of the most advanced Web3 markets on the continent, with an advanced regulatory framework and strong institutional investor interest. The country has become one of the largest cryptocurrency markets in the African continent, with transaction volumes reaching $26 billion over the past year. Unlike many African countries primarily driven by retail investors in cryptocurrency adoption, South Africa's institutional investor participation is increasing, with licensed companies and traditional financial institutions entering the field.

From the end of 2023, stablecoins have continued to grow on local exchanges in South Africa - a more than 50% month-over-month increase in October 2023. Stablecoins have replaced Bitcoin as the most popular cryptocurrency in recent months.

(Sub-Saharan Africa: Nigeria Takes #2 Spot in Global Adoption, South Africa Grows Crypto-TradFi Nexus, Chainalysis)

The key driver of cryptocurrency growth in South Africa lies in its clear regulatory stance. The country has classified cryptocurrencies as financial products, thereby building a structured legal environment that provides a clear regulatory framework for businesses and investors. In March 2024, South Africa approved 59 cryptocurrency operating licenses, paving the way for broader adoption of stablecoins. By setting regulatory safeguards, the government aims to attract investment, protect users from cybercrime, and expand channels for low-cost digital asset transactions.

The intergovernmental fintech working group in South Africa is actively refining its stablecoin regulatory approach and plans to formally classify stablecoins as a unique subset of crypto assets. This move aligns with the country's broader financial modernization and digital payment initiatives, aiming to ensure that stablecoins are properly integrated into the financial ecosystem. The 2024 budget review further emphasized the government's commitment to structural reforms, improved public financial management, and the development of new policies focused on stablecoins and blockchain-based digital payments.

Growing interest from institutional investors has also sparked discussions around bank-issued stablecoins. As traditional financial institutions explore stablecoin models, South Africa may soon see regulated, bank-backed digital assets, which will further promote the mainstream adoption of stablecoins. Under the leadership of startups like VALR, Luno, and Altify, South Africans have already begun using stablecoins for diversifying investments, making payments, and accessing financial services more efficiently.

With its developed financial sector, clear regulations, and the growing integration of cryptocurrencies with traditional finance, South Africa is becoming a leader in stablecoin applications across the African continent. As the government refines its policy framework and institutions deepen their involvement, South Africa is laying the foundation for stablecoins to play a central role in its evolving digital economy.

C. Kenya - Becoming a Stablecoin Hub in East Africa

Kenya has long been at the forefront of financial innovation in Africa. From pioneering mobile money to embracing Web3 early, the country continues to move beyond traditional banking systems toward more efficient digital solutions. Today, Kenya is positioning itself as a key player in the stablecoin revolution, driven by its robust fintech infrastructure, open regulatory environment, and growing demand for alternative financial services.

One of Kenya's greatest advantages is its deeply rooted mobile money culture.M-Pesa, launched by Safaricom in 2007, has become a cornerstone of Kenya's financial system, handling about 60% of the country's GDP and covering over 90% of the adult population.Its success lies in providing banking services without the need for a physical bank, allowing millions of Kenyans to deposit, withdraw, transfer funds, and even access credit through their mobile devices.Stablecoins complement this ecosystem, enabling users to hold value in stable currencies and conduct frictionless transactions globally.

In addition to mobile money, Kenya's regulatory environment has been a significant driver of fintech and Web3 development. Unlike many countries that take a restrictive stance on digital assets, Kenya's Capital Markets Authority (CMA) actively promotes innovation through regulatory sandboxes, allowing blockchain-based companies to test and refine their products.

The demand for stablecoins in Kenya stems from its lack of formal financial services. Small and medium enterprises (SMEs) face significant barriers to credit, with Kenyan businesses seeking approximately $1.1 billion in loans in 2021 alone. Stablecoin-driven loan solutions can fill this gap, offering businesses and individuals more affordable, faster, and more convenient credit options.

Kenya has also emerged as a global leader in tokenized private lending.According to RWA.xyz, Kenya ranks first globally in tokenized real-world asset lending, with a loan amount of $73.8 million, surpassing larger economies such as India and Brazil. This not only reflects Kenya's strong demand for alternative financing solutions but also demonstrates the country's ability to integrate blockchain-based credit models into its financial ecosystem.

With its mature mobile money landscape, advanced regulatory authorities, and growing stablecoin adoption, Kenya is rapidly becoming an important stablecoin hub in East Africa. As more fintech companies build stablecoin-based solutions, Kenya's role in shaping the region's financial future will continue to grow.

(Nika, photographed in the center of Nairobi, May 2025)

Five, Barriers to Adoption That Need to Be Overcome

Despite the strong progress made by builders in Africa's ideal experimental field, stablecoin infrastructure still faces structural challenges. To further expand, builders must overcome difficult obstacles, some technical and others political.

5.1 Policy Risks and Regulatory Ambiguity

Although the largest countries have made progress in regulation, most other countries remain in a regulatory gray area. Stablecoins are neither prohibited nor fully legalized, which slows down the pace of corporate adoption and hinders the entry of institutional capital.

As transaction volumes grow, law enforcement may increase in areas such as capital controls, taxation, anti-money laundering, and reporting. Progress in this area will come from active interaction with regulators. Founders, industry associations, and regional sandboxes can help shape the rules.

"Busha is proud to be the first licensed exchange in this market, and we are leading this transformation, providing the liquidity, trust, and infrastructure needed to drive a stablecoin-powered economy. This is not the future, it is here." — Michael Adeyeri, Co-Founder & CEO of Busha

5.2 Monetary Sovereignty

Governments across the world are increasingly concerned that stablecoin wallets are creating a "shadow dollar economy". Some countries are exploring local alternatives, such as ZARP (Zimbabwe Digital Asset Reserve Platform) and cNGN (Naira-backed stablecoins), or pilot central bank digital currencies (CBDCs) to maintain monetary control.

"The dominance of US dollar stablecoins reflects a crisis of trust... Without decisive policy innovation and encouragement of regulated, competitive Naira-backed stablecoins like cNGN, African countries may hand over their financial sovereignty to offshore stablecoin issuers." — Adedeji Owonibi, Founder & COO of Convexity (cNGN Issuer)

5.3 Liquidity Gap

Fast cross-border payments require capital to be available in the right time, place, and currency. Providers like Wise and Thunes address this issue by pre-funding account balances, but as stablecoins flow, this responsibility shifts to market makers, OTC desks, and other liquidity providers. As transaction volumes grow, capital remains a limiting factor in each channel.

Payment finance (PayFi) companies like MANSA and Arf are filling this gap. By using stablecoins as a transmission layer, they provide real-time liquidity for fintech companies, coordinators, and SMEs.

"Real-time, low-cost liquidity not only makes payments faster, but also unlocks new models, such as just-in-time supplier financing. For founders who have built their businesses around settlement risk, this is a game-changer."

"The next step is to embed this dollar liquidity directly into the applications and tools that emerging market businesses already use, so value can flow as easily as WhatsApp messages." — Mouloukou Sanoh, CEO & Co-Founder, MANSA

5.4 Fraud, Scams, and Consumer Trust

Cryptocurrency adoption brings new risks, from phishing scams and fake wallets to poorly secured applications. These vulnerabilities erode user trust, especially among first-time users. The responsibility for security falls on consumer applications. Trustworthy design, risk tools, and education must become core components of the product.

"Users are the biggest victims of malicious activities. Users will continue to use and recommend platforms they consider safe." — Zach Bijesse, CEO & Co-Founder at Archer

5.5 Awareness and Education

Outside of the cryptocurrency-native community, many merchants and agents still find stablecoins difficult to understand. Sustained "last-mile" adoption depends on usability, training, and demonstrating actual value.

"In many rural areas and urban communities, awareness of cryptocurrency is still low because it appears too technical." — Xino Zee, Lead at Send Africa

These obstacles are real, but they are gradually being overcome every day. Successful teams do not wait for perfect conditions, but rather build resilience, earn trust, and adapt to various channels and communities as regulations improve.

Six, Stablecoins Are Redefining African Finance

Stablecoins are fundamentally changing the financial landscape of emerging markets by providing a convenient, efficient, and reliable alternative to traditional banking systems.Unlike Western economies driven by institutional adoption, Africa did not wait for global consensus on stablecoins but has already started building.Emerging markets such as Sub-Saharan Africa are experiencing grassroots growth in small-value transfers, remittances, peer-to-peer payments, and value storage driven by retail users. At the same time, they are also implementing practical applications in remittances, trade, credit, and savings through fintech companies.

Experience over the past few years has shown that stablecoins are not just an alternative, but an inevitable trend for the future of African currencies. They can bypass broken financial rails, provide stable value, and enable instant, low-cost transactions, making them an essential tool for individuals, businesses, and even institutions. As more infrastructure is built and regulatory transparency increases, stablecoins will be more deeply integrated into Africa's financial system.

This is the prototype of programmable money. It is a region worth learning, building, and investing in.

We are producing a series of documentaries to tell these stories - the stories of people using stablecoins at the last mile - because to fully realize the potential of stablecoins, we need to better understand the conditions driving stablecoin adoption and continue to push for adoption in markets where the technology has found product-market fit. — Justin Norman, Founder of The Flip

He pointed out that,to understand stablecoin adoption in Africa, one must see the people at the "last mile," not just the technology.

Africa's demographic structure is in place, and the demand is evident. As global regulations gradually improve, this momentum will only accelerate. Stablecoins are no longer just a buzzword in the crypto market, buta systemic change that decouples from traditional finance and restructures on the chain..

Everyone sees different aspects, but all point to the same future -a world where you don't need a bank, but everyone can "have a bank."