Africa's Stablecoin Surge: Nigeria and Ethiopia Lead the Way
Africa is witnessing a surge in stablecoin usage, with Nigeria and Ethiopia leading the way. Following currency devaluations, these countries have seen increased adoption of stablecoins, which offer faster, cheaper, and more accessible transactions.
The success of stablecoins in emerging markets is attributed to their speed, low cost, open access, and programmability. High inflation and weakening domestic currencies have driven this trend, as users seek alternatives to volatile local currencies. Cleva, a Nigerian fintech startup, has facilitated payments exceeding $1 million monthly for thousands of users within its first four months, demonstrating the growing demand.
Both retail investors and institutional clients are turning to stablecoins to manage currency volatility and inflation. Tens of fintechs across Africa are now leveraging stablecoins to offer their services, with many major players like Stripe and Tether providing stablecoin infrastructure. Cleva, after securing $1.5 million in pre-seed funding, is using stablecoins to enhance international payments infrastructure across Africa.
Stablecoins are proving to be a practical solution for daily needs like remittances, trade, and savings in Africa, particularly in countries with unstable currencies and limited foreign currency access. As regulatory environments evolve, more fintechs are expected to adopt stablecoins, further driving growth and innovation in the continent's financial landscape.
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