Stablecoins expand across Africa, cutting remittance costs and offering an alternative to traditional banking Africa’s growing reliance on stablecoins is gaining ground across cross-border payments and everyday finance. With remittance fees eating into incomes and inflation weakening local currencies, fiat-pegged coins are gaining traction among households and businesses alike. Blockchain data now indicates that stablecoins play a central role in how money is stored and settled across the continent. Africa’s Money Flows Shift as Stablecoins Cut Remittance Costs, Songwe Says Vera Songwe said remittances account for more cash flow into Africa than foreign aid. In her speech at the World Economic Forum in Davos, Songwe stressed the strain caused by fees and slow settlement on cross-border payments. According to the former UN employee, stablecoins allow funds to move within minutes at a lower cost. Faster settlement gives families quicker access to support and helps small businesses manage payments without relying on slow and expensive banks. Inflation has also driven stablecoin adoption across Africa. Songwe noted that inflation has risen above 20% in roughly 12 to 15 countries since the COVID-19 pandemic. Dollar-pegged assets offer a way to protect savings from rapid currency depreciation. Even with the rise in smartphone use, about 650 million people in Africa do not have a bank account. Mobile wallets allow users to store and transfer stablecoins without relying on banks. For many, these wallets provide a first entry point into formal financial services. Countries such as Egypt, Nigeria, Ethiopia, and South Africa account for the most stablecoin users on the continent. High inflation and stress of conducting cross-border transactions push businesses toward the fiat-pegged coins. In the aforementioned jurisdictions, many small companies rely on them for payment and settlements. Songwe highlighted the transparency that comes with blockchain-based payments. Illicit financial flows and weak tax collection have become a key talking point among governments in the region. With the rise in stablecoin use, payments and business activities will be tracked easily.  “So I think for us, it actually is a governance enhancer. It’s a fiscal policy enhancer, and it’s a monetary policy disciplinary tool.” Vera Songwe said. Fiat-Pegged Assets Take Hold in Africa as Payment Volumes Climb Recent reports show Sub-Saharan Africa is among the fastest-growing regions for crypto adoption. Chainalysis data reveals over $205 billion in crypto activity between July 2024 and June 2025. This reflects a 52% year-over-year increase, placing Africa third globally. Transfers under $10,000 make up a larger share of transactions than in other regions. Nigeria and South Africa lead in volume and show strong institutional participation. Analysts link much of that activity to business-to-business payments and regional trade. Image Source: Chainalysis On the other hand, stablecoins are settling high-value transactions tied to trade with the Middle East and Asia. Multi-million dollar transfers support sectors such as energy imports and merchant payments.  Stablecoins are filling gaps left by banks, offering faster payments, lower costs, and access to global currencies. For millions across the continent, fiat-pegged coins now function as a working alternative to traditional banking systems. The post Stablecoins Act as Banking Alternative for Millions Across Africa appeared first on Live Bitcoin News.

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