Nigeria and South Africa, Africa’s two largest economies, are leading the continent in stablecoin demand growth and expressing the highest levels of optimism about their future, according to the Stablecoin Utility Report. Many respondents also indicated a desire to see stablecoins gain broader acceptance in everyday transactions.
While stablecoins offer the prospect of faster and more affordable cross-border payments in lower-income markets, concerns persist. Nearly 99 percent of stablecoins, including major players such as Tether and USDC, are pegged to the U.S. dollar, prompting fears over increased dollarization of local economies and the risk of capital outflows.
Developing economies lead growth
The report, published by YouGov in partnership with BVNK, Coinbase, and Artemis, surveyed more than 4,650 respondents across 15 countries who either currently own stablecoins or cryptocurrencies or intend to do so.
The findings point to rising appetite for stablecoins in other emerging markets, including India. More than half of respondents said they had increased their stablecoin holdings over the past year, with the strongest growth recorded in developing economies.
Nearly 80 percent of respondents in Nigeria and South Africa reported that they already own stablecoins, according to the data, and more than three-quarters of them said they plan to expand their holdings over the next year.
Among those who do not yet own stablecoins, the intention to begin holding them was about twice as high in low- and middle-income countries compared with stronger economies. In Nigeria, 95 percent of respondents indicated they would rather receive payments in stablecoins than in the naira.
Read: UAE central bank approves launch of dirham-backed stablecoin DDSC on ADI Chain
Global stablecoin market surges to over $310 billion
Worldwide, the stablecoin market is now worth more than $310 billion, led overwhelmingly by dollar-backed tokens such as Tether, with a market capitalization of about $185 billion, and USDC at roughly $75 billion.
Further growth is anticipated, particularly in light of recent U.S. regulatory developments, including the GENIUS Act. Still, policymakers in emerging markets remain wary. Many central bankers caution that widespread stablecoin use could impact deposits from domestic banks, weaken the effectiveness of monetary policy and make capital flight easier.
South African Reserve Bank Governor Lesetja Kganyago has, however, underscored a possible upside, pointing to remittance costs that can reach as much as $30 to send $100 to neighboring Mozambique, an inefficiency stablecoins could potentially reduce.
The survey also noted that limited merchant and online acceptance remains a key barrier, constraining broader use of stablecoins for everyday transactions and subscription payments.
