African Giants Nigeria and South Africa Top Charts for Stablecoin Growth

A major new survey has pinpointed Nigeria and South Africa as the epicenters of surging stablecoin demand, revealing that users in these nations are more optimistic about the digital currency than anywhere else.

The Stablecoin Utility Report indicates a strong push from consumers in Africa’s biggest economies for these dollar-pegged assets to gain widespread acceptance as a payment method.

While proponents highlight the ability of stablecoins to create faster and cheaper payment corridors for remittances and commerce in lower-income countries, their composition raises significant economic questions. With 99% of the market, including dominant forces Tether and USDC, tethered to the US dollar, their rise in regions like Africa sparks debate over the potential for increased dollarisation and the ease with which capital can be moved out of local financial systems.

The findings are the result of a large-scale research initiative conducted by YouGov in partnership with several crypto industry players, including BVNK, Coinbase, and Artemis. The survey aggregated the views of over 4,650 individuals across 15 countries, all of whom either currently hold, or have firm plans to hold, stablecoins or other forms of cryptocurrency.

At present, the actual utility of stablecoins is heavily skewed toward the digital asset markets themselves. Industry data from BCG, published last year, estimates that a significant 88% of all stablecoin transaction volume is related to cryptocurrency trading. In stark contrast, the use of stablecoins for paying for goods or services represents a tiny fraction of the total, coming in at just 6%.