The increasing adoption of stablecoins in Sub-Saharan Africa is transforming the region’s economy, with over 40% of crypto transactions now conducted using these digital currencies. This shift is largely driven by the instability of local currencies, such as in Nigeria and Ethiopia, where inflation and currency devaluation make it difficult for individuals and businesses to maintain their financial stability. Stablecoins like USDT and USDC, which are pegged to the U.S. dollar, offer a more stable store of value compared to local currencies, allowing people to protect their savings from devaluation and facilitate international trade.
The surge in stablecoin usage, especially for cross-border payments and day-to-day transactions, reflects how these digital currencies are filling the gaps left by limited access to U.S. dollars. In countries like Ethiopia, the use of stablecoins has grown by 180%, helping businesses continue operations in the face of economic challenges. This trend is expected to grow, further stabilizing economies in the region and expanding financial inclusion for the unbanked population, which is still significant in Sub-Saharan Africa.
(Bitcoinist.com)(Coinfeeds).