Challenges Facing Stablecoins Adoption in Africa

The rise of stablecoins has revolutionized money transfers in Africa, yet their mainstream adoption faces significant hurdles. Recent discussions reveal that while stablecoins facilitate quicker and cheaper transactions compared to banks, spending capabilities and regulatory transparency remain major obstacles.

The Current Landscape

According to a panel discussion at TechCabal's Moonshot event, involving industry experts like Shalom Osiadi, CEO of Esca Finance, and Demilade Olugbenga from Breet, the slow uptake of stablecoins in daily transactions is becoming increasingly evident.

Olugbenga highlighted a common issue faced by freelancers and service providers. If someone wishes to pay them in stablecoins but no platforms or applications support it, recipients are likely to decline the payment. This creates a frustrating cycle where potential users cannot fully leverage stablecoins in their everyday transactions.

Impressive Figures, But Adoption Stalls

Despite the hurdles, the use of cryptocurrency is on the rise in Sub-Saharan Africa. From July 2024 to June 2025, the region saw over $205 billion in on-chain crypto transactions, with Nigeria alone accounting for $92.1 billion, according to Chainalysis. Notably, stablecoins represented approximately 43% of this total crypto volume.

Transaction costs with stablecoins are significantly lower compared to traditional banking methods. For instance, using Breet, users can transfer amounts ranging from $5 to $500,000 at just a nominal fee of 10 cents. In contrast, banks may take several days to process a transaction, often charging up to 8% due to the high volatility of local currencies.

Regulatory Concerns and Solutions

Central banks aim to monitor the flow of money to mitigate risks associated with unregulated financial instruments. Osiadi pointed out that privately issued stablecoins don’t provide the necessary transparency for regulators. The Central Bank of Nigeria (CBN) has attempted to respond to this with initiatives like the eNaira, launched in October 2021. However, a report by the International Monetary Fund revealed that a staggering 98.5% of eNaira wallets lacked activity within a typical week.

Another initiative, the cNGN, a naira-pegged stablecoin introduced by WrappedCBDC under the guidance of the Securities and Exchange Commission (SEC), aims to fill this gap. Osiadi believes the CBN should either develop their own stablecoin or collaborate with existing issuers like cNGN to foster adoption.

The Future of Stablecoins in Africa

Osiadi suggests that the majority of his corporate clients prioritize the value that stablecoins can provide, regardless of the underlying mechanics. Esca Finance processes considerable transaction volumes, citing figures between $75 million and $120 million monthly, indicating a strong need for efficient payment solutions.

Furthermore, Breet is making strides in integrating stablecoin payments into existing consumer platforms. For instance, if TechCabal wanted attendees to pay in stablecoins, Breet could facilitate that conversion, ensuring businesses receive their payments in accessible local currencies.

Both Osiadi and Olugbenga are optimistic about future adoption as more banks begin to embrace stablecoins. They emphasize the importance of collaboration between regulators and financial operators to establish clear guidelines. Notably, the SEC has proposed regulations to ensure that foreign-pegged stablecoins gain approval before being listed on Nigerian platforms, highlighting the regulatory steps that could determine the future landscape of stablecoin adoption.