In the most unexpected corners of the globe, the trendiest "crypto players" have emerged—not in New York or Silicon Valley, but in Sub-Saharan Africa. Here, young people use mobile phones to scan codes for payments, and families use USDT (Tether) as a "digital dollar" for saving money, paying wages, and making cross-border remittances. For them, this is not speculation, but survival.
By 2024, the total amount of cryptocurrency transactions on the African blockchain reached $125 billion, more than half of which were stablecoins. Nigeria alone contributed nearly $59 billion. Over the past three years, the number of crypto users in Africa has grown 25 times, the fastest rate in the world. While the outside world is still debating whether "cryptocurrency is a scam," Africans are already using stablecoins to buy groceries, pay tuition fees, and even support their families.
One | Currency Depreciation: Wealth Evaporating Anytime
In Africa, inflation is the norm. In 2024, the average inflation rate in Africa reached 18.6%, far exceeding the international alert line of 3%. Zimbabwe even reached 92%, where a year's savings could shrink by half in a few months. The currency's storage function is almost lost, and the hard-earned cash of families quickly turns into unprotected paper. Faced with this uncertainty, people can only look for a new "anchor."
Two | Dollar Scarcity: Huge Gap Between Official and Black Market Rates
Dollars are extremely scarce in Africa. Most countries have limited foreign exchange reserves, and exchanges are strictly regulated. The official exchange rate in Zimbabwe is 27:1, while the black market rate is as high as 50:1; Sudan's official rate is 560:1, but the black market soars to 2100:1. Ordinary people simply cannot afford the high cost of exchange, making the dollar almost untouchable.
Three | Banking Absence: A Financial Vacuum for 350 Million People
In Africa, opening a bank account is extremely difficult. It requires a fixed address, stable occupation, guarantors, and even payment of fees. However, in reality, a large number of people lack these conditions, resulting in over 350 million adults being unable to enjoy basic financial services, with 55% of people without bank accounts.
However, the widespread availability of affordable smartphones (coverage exceeding 70%) provides an alternative path. People skip the bank card stage and directly use mobile phones and digital wallets for deposits, payments, and cross-border remittances. In such a vacuum environment, stablecoins naturally become the smoothest financial alternative.
Four | Stablecoins Take the Stage: USDT Becomes the "Digital Dollar"
In Africa, Bitcoin is not the main character; the real currency substitute is stablecoins. Especially USDT, which is pegged 1:1 to the dollar, is widely regarded as the "digital dollar."
Companies pay salaries in USDT, individuals use it for cross-border remittances, and merchants even directly scan codes to receive USDT. Although other stablecoins like USDC are also circulating locally, they are far less widespread than USDT. Here, the choice is not a preference, but a reality: whoever has the strongest liquidity is used by the people.
Five | Dual Significance of Stablecoins: Survival and Trend
At the lower end, stablecoins are survival tools. They help people withstand the depreciation of their own currency, avoid high exchange costs, bypass banking thresholds, and ensure that income does not evaporate instantly.
At the higher end, they symbolize a trend. A single wallet address allows young Africans to be on the same track as traders in New York and London. This is their first time feeling equal to the global financial market. Mothers convert their wages into USDT to preserve tuition fees, workers use it to send money and avoid high fees, and young people use it for scan code payments to ensure fund reliability. These specific choices gradually converge into a new currency consensus.
Six | Market Logic Driven by Demand
The wave of stablecoins in Africa is essentially a result driven by demand:
Frequent depreciation of the local currency → Need for reliable value storage;
Scarcity and high cost of dollars → Need for low-cost alternatives;
Absence of banking systems → Need for convenient wallet tools.
Stablecoins just solve these pain points. For this reason, they bring tremendous commercial value. Tether, the issuer of USDT, earned about $13 billion in profits in 2024 alone through coin minting and reserve investments. Profit-seeking and innovation go hand in hand, driving demand and value.
Conclusion: From Africa to Global Signals
The stablecoin craze in Africa is not a trend chase, but a consensus choice under real difficulties. As more and more people believe it can preserve value, make payments, and facilitate cross-border remittances, this consensus gradually becomes a new monetary foundation.
At the lower end, it is a survival tool for people; at the higher end, it reflects the possibilities of the future. The explosion of stablecoins in Africa may herald the prelude to the next round of global financial transformation.
