Africa's stablecoin revolution: the banking system is being bypassed

Stablecoins, cryptocurrencies pegged to stable reserve currencies such as the US dollar, are solving decades-old financial shortages in Africa. Infrastructure expenses, regulatory complexity and the economics of serving low-income populations have prevented banks from reaching most of the continent’s 1.58 billion people. The alternative digital dollar economy is informal, fast-growing and, essentially, hard for governments, central banks and international financial institutions to ignore. Africa’s stablecoin story is not about speculators or techies seeking returns - it involves ordinary people using their tools to solve financial difficulties. It may possibly be the largest blockchain-based finance deployment worldwide.

Nigeria’s dominates stablecoin flows into sub-Saharan Africa

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Why stablecoins are solving problems the banks could not fix

Many sub-Saharan African currencies have plummeted against major currencies. Controlled devaluation, foreign cash shortages and underlying e…