Biggest African economies lead stablecoin demand growth, study shows

Advertisement Business Biggest African economies lead stablecoin demand growth, study shows FILE PHOTO: Representation of Tether stablecoin cryptocurrency in this illustration taken September 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo 18 Feb 2026 09:46PM (Updated: 18 Feb 2026 09:48PM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST JOHANNESBURG, Feb 18 : Africa's biggest economies Nigeria and South Africa are driving the strongest growth in demand for stablecoins and are the most optimistic about their potential, a survey found, with many users also wanting them to become more widely accepted.Stablecoins are promising faster and cheaper ways to move money in poorer countries, but as 99 per cent of them, including the dominant Tether and USDC, are pegged to the dollar, they also raise worries about economic dollarisation and capital flight. The survey, titled the Stablecoin Utility Report and conducted by YouGov with crypto firms BVNK, Coinbase and Artemis, took the views of more than 4,650 individuals from 15 countries who either hold, or plan to hold, stablecoins or cryptocurrencies. The use of the coins today is largely for moving money between cryptocurrency markets. Nearly nine-tenths of stablecoin transactions relate to crypto trading, while just 6 per cent are for payment of goods or services, BCG estimated in a report last year. Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday. This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners. Loading PREFERENCE FOR STABLECOIN PAYMENTS The report, which also found growing demand for stablecoins in other emerging countries such as India, showed over half of those surveyed had increased stablecoin holdings in the last year, with developing economies seeing the strongest trends.Almost 80 per cent of Nigerian and South African respondents already held stablecoins, the figures showed, with over 75 per cent of those also intending to increase their holdings further in the coming year. Among non-owners, the intent to start holding stablecoins was roughly twice as high in low and middle-income economies than in high-income ones, with 95 per cent of Nigerian respondents saying they would prefer to receive payments in stablecoins than in the Naira."People are already getting paid and spending stablecoins, especially where traditional payments are slow, expensive, or unreliable," said Chris Harmse, co-founder of BVNK. But they are also "asking for greater integration into their existing financial tools," he added.THREAT TO MONETARY POLICY Globally, the stablecoin market is valued at more than $310 billion, dominated by U.S.-pegged tokens such as Tether ($185 billion) and USDC ($75 billion). The market is expected to expand further following U.S. regulatory moves, such as the GENIUS Act.However, central bankers in emerging economies remain cautious. They fear stablecoins could drain domestic bank deposits, undermining monetary policy, while facilitating capital flight.South African Reserve Bank Governor Lesetja Kganyago pointed out a potential benefit, noting remittance fees as high as $30 to send $100 to neighboring Mozambique, a gap stablecoins could help address.The survey also highlighted limited acceptance of stablecoins in shops and online as a hurdle to broader adoption for everyday purchases and subscriptions. Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday. Sign up for our newsletters Get our pick of top stories and thought-provoking articles in your inbox Subscribe here Get the CNA app Stay updated with notifications for breaking news and our best stories Download here Get WhatsApp alerts Join our channel for the top reads for the day on your preferred chat app Join here Advertisement Also worth reading Content is loading... Advertisement Expand to read the full story Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST