Stablecoins are now widely used for savings, payments, and trade in Nairobi and Lagos due to inflation, FX swings, and high remittance costs. Mobile money links make stablecoins practical, but risks remain around reserves, scams, and regulations. Nigeria processed nearly $22 billion in stablecoin transactions from July 2023 to June 2024, the largest in Sub-Saharan Africa.
Inflation, FX volatility, and high remittance costs drive adoption of stablecoins in Nigeria and Kenya. Inflation in Nigeria remains high at 21.88% in July 2025, while Kenya faces rising costs and currency swings. Sub-Saharan Africa has the world’s most expensive remittance corridor, with costs averaging 8.45% in Q3 2024.
Stablecoins like USDC and USDT offer a practical solution for individuals in emerging markets, providing quick, affordable transfers. In Nigeria, stablecoins dominate transactions under $1 million, totaling nearly $3 billion in Q1 2024. Tether’s USDT and USDC are the leading options, with Tron emerging as a preferred network for USDT transfers.
In Kenya and Nigeria, stablecoins are accessed through regulated fintechs and peer-to-peer marketplaces, with cash-in and cash-out options through banks or mobile money services. Companies like Yellow Card facilitate cross-border transfers in USDT, with stablecoins accounting for 99% of their business.
Mobile money services like M-Pesa in East Africa play a key role in integrating stablecoins into everyday use. Companies like Kotani Pay offer conversion services for settling in stablecoins and paying directly into mobile wallets. Fintechs like Chipper Cash use stablecoins behind the scenes for instant dollar transfers across African markets.
Regulatory stances on stablecoins vary in Nigeria and Kenya, with shifts from prohibition to cautious permission. Nigeria’s SEC updated its crypto framework in 2025, while Kenya introduced a 10% excise duty on virtual asset provider fees. Stablecoins face risks related to peg and counterparty issues, operational risks, and policy challenges in Africa.
Stablecoins offer practical solutions for individuals facing inflation and high remittance costs in Africa, but they come with risks. The future may bring clearer disclosure requirements, tougher licensing, and more seamless integration with mobile money services. Users should prioritize low costs, trustworthy providers, and stay informed as regulations evolve.
Read more at Cointelegraph: How Africans Use Stablecoins to Beat Inflation in 2025