Nigeria and South Africa have emerged as the primary engines of growth for stablecoin adoption, according to a recent global survey. These two major African economies are demonstrating the highest levels of optimism regarding the future of digital assets, with a significant portion of the population advocating for more widespread acceptance of these tokens in daily commerce.
While stablecoins offer the potential for faster and more affordable financial transactions in developing regions, their structure presents unique economic challenges. Because approximately 99 percent of these assets—including market leaders Tether (USDT) and USDC—are pegged to the U.S. dollar, financial experts have expressed concerns regarding “dollarization” and the potential for increased capital flight from local markets.
The findings were detailed in the Stablecoin Utility Report, a collaborative study between YouGov and industry firms BVNK, Coinbase, and Artemis. The researchers gathered data from over 4,650 individuals across 15 nations who currently hold or intend to acquire digital assets. Current data suggests that stablecoins are primarily utilized as a bridge between various cryptocurrency markets. Last year, a BCG report estimated that nearly 90 percent of all stablecoin transactions were related to crypto trading, whereas direct payments for goods and services accounted for only about 6 percent.
Shifting payment preferences
Despite the current focus on trading, there is a clear trend toward using stablecoins for practical payments in emerging markets like India, Nigeria, and South Africa. More than half of all respondents increased their stablecoin holdings over the past year. In Nigeria and South Africa specifically, nearly 80 percent of participants already own stablecoins, and over 75 percent of those users plan to expand their portfolios in the coming months.
The appetite for these assets is particularly strong among those who do not yet own them; interest in starting a stablecoin portfolio is twice as high in low-to-middle-income countries compared to wealthier nations. Notably, 95 percent of Nigerian participants indicated they would prefer to be paid in stablecoins rather than the Nigerian Naira. According to Chris Harmse, co-founder of BVNK, this shift is driven by the fact that traditional payment systems are often perceived as slow, expensive, or unreliable. Users are now pushing for these digital tools to be integrated more deeply into their existing financial software.
Stablecoin market dominance and remittance
The global stablecoin market is currently valued at over $310 billion, with Tether ($185 billion) and USDC ($75 billion) maintaining dominance. Analysts expect the sector to grow further as the United States implements new regulatory frameworks, such as the GENIUS Act. However, central bank officials in developing economies remain wary. There are fears that a mass shift toward stablecoins could deplete domestic bank deposits, thereby weakening national monetary policies. South African Reserve Bank Governor Lesetja Kganyago acknowledged both the risks and the opportunities, citing the high cost of remittances—where it can cost up to $30 to send $100 to neighboring Mozambique—as a problem that stablecoins are uniquely positioned to solve. For broader adoption to occur, however, the report noted that current hurdles involving limited merchant acceptance in physical and online stores must still be overcome.
Read more: UAE central bank approves launch of dirham-backed stablecoin DDSC on ADI Chain
Nigeria’s digital asset regulatory framework
The landscape of digital finance in Africa has shifted significantly since the initial report. Nigeria has transitioned from a restrictive stance to a supervised regulatory environment. As of 2026, the Nigerian Securities and Exchange Commission (SEC) has implemented the “Accelerated Regulatory Incubation Program” (ARIP), which provides a legal pathway for Virtual Asset Service Providers (VASPs) to operate. This move has successfully brought approximately 25.9 million Nigerian digital asset users into a more transparent system. Under these new rules, crypto exchanges must maintain a minimum paid-up capital of 500 million Nigerian Naira (₦) and strictly adhere to anti-money laundering (AML) and “Know Your Customer” (KYC) protocols. These regulatory shifts coincide with a high demand for stablecoin-based compensation, with 95 percent of Nigerian participants expressing a preference for stablecoin pay.
Stablecoin regulation and adoption
In South Africa, the Financial Sector Conduct Authority (FSCA) has officially licensed over 300 crypto asset service providers as of early 2026. This regulatory clarity has encouraged traditional South African banks to begin integrating blockchain-based services into their own infrastructure. These institutions are now exploring tokenized deposits and regulated custody services, aiming to compete with the 9.3 percent stablecoin adoption rate seen across Sub-Saharan Africa—the highest regional rate in the world. Furthermore, stablecoins have moved beyond savings, with 50 percent of South African users now utilizing these assets for daily expenses and digital subscriptions.
On the global stage, the passage of the GENIUS Act in the United States has provided a “gold standard” for reserve backing, requiring a 1:1 ratio of liquid assets for all federally regulated “payment stablecoins.” This has stabilized global market confidence and prompted other jurisdictions to accelerate their own legislative frameworks to prevent capital from flowing exclusively toward U.S.-regulated tokens. Emerging data from February 2026 indicates that stablecoins are evolving from speculative trading tools into “transactional money,” with 62 percent of Nigerian users now using these assets for daily expenses and digital subscriptions.
