Stablecoins are a type of cryptocurrency that are tied to the value of a stable asset, initially designed to minimize price volatility. The most utilized are fiat-backed, and most stablecoins, such as the USDT, are pegged against the U.S dollar. As of today, the stablecoins market capitalization is valued at around $164.6bn.
Usage of Stablecoins for Cross-Border payments
Stablecoins offer a promising solution to the challenges of cross-border payments by reducing costs, increasing speed, enhancing accessibility, providing transparency and security, and minimizing volatility.
According to Juniper Research, it is estimated that the value of payment transactions powered by stablecoins will exceed $187bn. globally by 2028, up from $53bn. in 2023.
Adoption of Stablecoins in Sub-Saharan Africa
In Sub-Saharan Africa, where traditional banking services are often limited, stablecoins can play a crucial role in promoting financial inclusion, supporting remittances, and facilitating trade.
Share of monthly cryptocurrency value sent to Sub-Saharan Africa (July 2022 – June 2023)
Sub-Saharan African Countries by cryptocurrency received (July 2022 – June 2023)
Nigeria remains at the forefront of the digital asset revolution in Sub-Saharan Africa with inflows amounting to nearly $60bn. in cryptocurrencies between July 2022 till June 2023. With growing adoption of cryptocurrency regulations, other countries are also joining the fold.
Adoption of Stablecoins in Sub-Saharan Africa
In Sub-Saharan Africa, where traditional banking services are often limited, stablecoins can play a crucial role in promoting financial inclusion, supporting remittances, and facilitating trade.
Usage of Stablecoins for Cross-Border payments
Stablecoins offer a promising solution to the challenges of cross-border payments by reducing costs, increasing speed, enhancing accessibility, providing transparency and security, and minimizing volatility. According to Juniper Research, it is estimated that the value of payment transactions powered by stablecoins will exceed $187bn. globally by 2028, up from $53bn. in 2023.
