Nigeria and South Africa Emerge as Global Engines for Stablecoin Adoption

Reading Time: < 1 minute

The largest economies on the African continent are currently spearheading a surge in global demand for stablecoins. A comprehensive new survey indicates that Nigeria and South Africa are not only recording the most significant growth in usage but also harbor the most optimistic outlook regarding the future potential of these digital assets.

The study reveals a strong desire among users in these regions for stablecoins to achieve broader mainstream acceptance in the near term.

Stablecoins are increasingly viewed as a technological solution for facilitating faster and more cost-effective international money transfers, particularly in developing economies. However, the dominance of dollar-pegged assets like Tether and USDC, which account for 99% of the market, introduces significant macroeconomic considerations. Analysts point to the potential risks of accelerated economic dollarisation and increased capital flight in nations where these digital dollars gain widespread traction.

The findings are detailed in the Stablecoin Utility Report, a large-scale study conducted by YouGov in collaboration with crypto firms BVNK, Coinbase, and Artemis. The research aggregated the perspectives of over 4,650 individuals spanning 15 different countries, all of whom currently hold or have concrete plans to acquire stablecoins or other cryptocurrencies.

Despite the optimistic outlook from users in emerging markets, current use cases remain heavily concentrated within the digital asset ecosystem itself. Industry estimates suggest that nearly 90% of all stablecoin transaction volume is currently linked to cryptocurrency trading activities. This figure starkly contrasts with the 6% share attributed to the payment for actual goods and services, according to a report published by BCG last year.