Stablecoin usage is accelerating across Africa as households and businesses look for cheaper cross-border payments and protection against rising living costs.
The trend reflects growing frustration with traditional remittance systems that remain slow and expensive for everyday users.
Speaking at the World Economic Forum in Davos, economist Vera Songwe highlighted how digital dollar-linked tokens are filling gaps left by weak local currencies.
Stablecoins are stepping in where remittance systems are costly and local currencies are under pressure.
Vera Songwe said.
Songwe noted that remittances now contribute more to many African economies than foreign aid flows.
Despite their importance, sending money across borders in Africa often costs around six dollars for every one hundred dollars transferred.
Settlement through conventional channels can also take several days, creating cash flow problems for families and small businesses.
Stablecoins allow funds to move within minutes, reducing both time delays and transaction costs.