Nigeria Drives 43% of SSA Crypto Activity as Stablecoins Bridge Africa’s Financial Gaps

Nigeria has emerged as the leading contributor to crypto transactions in sub-Saharan Africa (SSA), with centralized service (CS) accounts processing 43% of the region’s total crypto activity in 2024. This figure highlights the growing reliance on digital assets for cross-border financial transactions across the region, according to data derived from recent reports. While decentralized platforms continue to play a role, the dominance of centralized services underscores a preference for regulated and more accessible infrastructure in the SSA market.

The role of stablecoins in Africa has also gained significant traction, with flows reaching 6.7% of the continent’s GDP in 2024, as reported by the International Monetary Fund (IMF). Although the absolute volume of transactions remains smaller than in North America and Asia, the proportion relative to economic size is among the highest globally. Stablecoins, especially Tether’s USDT and Circle’s USDC, have become key instruments for facilitating cross-border trade and remittances, particularly in markets where traditional banking systems face infrastructural and accessibility challenges.

Tether’s USDT accounted for 57.3% of stablecoin flows in Africa, with USDC representing the remaining 42.7%. The dominance of USDT reflects its widespread adoption in emerging markets, where it is used as a stable medium of exchange and store of value. Binance emerged as the primary platform for Africa’s stablecoin transactions, handling 74.3% of the region’s volume. Coinbase, by contrast, accounted for 25.7%, indicating a stronger alignment of African users with platforms serving emerging markets.

Cross-border transactions constitute the majority of stablecoin activity in Africa, with only 14% of flows occurring within the region. This pattern underscores the role of stablecoins in facilitating international trade and remittance flows, where traditional banking services often fall short due to high fees and lengthy processing times. The average transaction size in Africa and the Middle East was $13,108, higher than in the Asia-Pacific region but significantly lower than in North America, where the average reached $35,016.

The global dominance of stablecoins continues to be driven by their role in bridging financial gaps in underbanked regions. While Asia-Pacific and North America accounted for the largest volumes in absolute terms—$519 billion and $633 billion, respectively—emerging markets like Africa and Latin America show the highest adoption relative to GDP. This trend suggests a growing integration of stablecoins into the financial infrastructure of developing economies, with potential long-term implications for international payments and monetary policy.

Source: [1] Stablecoin flows in Africa hit 6.7% of GDP in 2024 – IMF (https://www.mariblock.com/stablecoin-flows-in-africa-hit-6-7-of-gdp-in-2024-imf/)