Across Africa, businesses are embracing stablecoins as a practical solution to one of the continent’s biggest financial challenges—currency volatility and limited access to foreign exchange. As local currencies continue to fluctuate against major global currencies, many companies are now relying on dollar-backed digital assets to protect their finances, preserve value, and make faster, more affordable cross-border payments. The growing trend was a major talking point during the Africa Stablecoin Consortium programme held in Accra, where industry leaders highlighted the increasing role of stablecoins in Africa’s evolving financial ecosystem.
Speaking during a panel session titled “The Future of Cross-Border Payments in Africa: Stablecoins at the Core,” Ms. Lasbery Chioma Oludimu, Group Vice President of Operations and Managing Director of Yellow Card Nigeria, explained how unstable exchange rates and persistent foreign exchange shortages have become major obstacles for businesses across the continent. She shared the example of a Nigerian company that secured a euro-denominated loan but later faced mounting repayment costs after the naira lost significant value against major international currencies. According to her, situations like this demonstrate why businesses are increasingly turning to stablecoins to reduce financial risk and maintain greater stability.
Industry experts at the event also noted that many African businesses continue to struggle to obtain foreign currency through official banking channels, making international payments more expensive and time-consuming. Stablecoins, they said, offer an efficient alternative by enabling quicker, lower-cost transactions while providing access to digital dollar liquidity. Mr. Arnoud d’Yve de Bavay, Africa Lead Expansion at Tether, explained that although stablecoins initially gained popularity through cryptocurrency trading, they are now widely used for payments, savings, and remittances. He emphasized that stablecoins are designed to complement traditional banking systems rather than replace them, helping to improve payment efficiency and expand financial inclusion.
Adding to the discussion, Mr. Dominic Mulinda, Chief Product Officer of HoneyCoin, stressed that successful cross-border payments depend not only on stablecoins but also on strong liquidity, reliable banking partnerships, and sound regulatory compliance. He explained that when supported by the right financial infrastructure, stablecoins can significantly simplify international transactions for businesses operating across multiple African markets. His comments reflected the growing belief that digital assets are becoming an essential part of Africa’s financial future rather than just an emerging technology.
Regulators are also beginning to acknowledge the potential of stablecoins while maintaining a cautious approach. Representing the Bank of Ghana, Mr. Hayford Kumah, Head of the Fintech Oversight and Supervision Unit, said digital assets are expected to play an increasingly important role in the future of payments and financial services. He noted that regulators remain focused on encouraging innovation while safeguarding financial stability and consumer protection. As stablecoins continue to gain acceptance worldwide for payments, savings, remittances, and cross-border transactions, their adoption across Africa could mark a significant step toward building a more resilient and efficient financial system for businesses and consumers alike.
source: GBN
