Stablecoins are emerging as financial railways in Africa, according to the former head of the United Nations
Stablecoins are being used across Africa as a cheap and fast remittance option, with remittances becoming “more important than aid” on the continent, according to former UN Secretary-General Vera Songwe.
Songwe told a World Economic Forum panel in Davos, Switzerland on Thursday that traditional money transfer services in Africa often cost about $6 per $100 sent, making cross-border payments expensive and slow.
She said stablecoins are reducing payments and settlement times, allowing individuals and small businesses to move money in minutes instead of waiting days for cross-border payments to clear.
Songwe said inflation in “about 12 to 15 countries” across Africa has risen to more than 20 percent since the Covid-19 pandemic, noting that stablecoins store value in currencies that are not subject to inflation and act as a financial safety net. she said
650 million people in Africa do not have a bank account. Statcoins can be earned on your smartphone, so you can save and impoverish yourself in a currency that isn't subject to inflation.
According to Songwe, Stalkcoin usage is highest in Egypt, Nigeria, Ethiopia and South Africa in countries with high inflation or strict capital controls. She added that the majority of transactions are carried out by micro and small enterprises, indicating that stablecoins are working as a tool for wider financial inclusion.
Songwe is the chairman and founder of the Liquidity and Sustainability Facility and a non-resident senior fellow at the Brookings Institution. She previously served as the Secretary-General of the United Nations and the Secretary-General of the Economic Commission for Africa.
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African countries promote crypto legislation
According to a Chinalysis report released in September, sub-Saharan Africa is one of the fastest-growing regions in the world for crypto adoption. The region achieved more than $205 billion in onchain value between July 2024 and June 2025, an increase of approximately 52 percent year-on-year, ranking third globally.
As crypto adoption accelerates across the continent, national responses have varied, ranging from formal legalization and tax integration to cautious, risk-focused monitoring.
In December, Ghana's parliament legalized cryptocurrency trading after passing the Virtual Asset Service Providers Act, establishing a formal regulatory framework for the industry. Bank of Ghana Governor Johnson Asiama said the law would allow crypto activity and authorities are providing tools to help manage associated risks.
On January 13, Nigeria implemented new laws requiring crypto service providers to link transactions to users' tax identification numbers. The change is designed to bring crypto network activity into the tax network by providing identity-based reporting, reducing the need for direct blockchain monitoring by regulators.
In South Africa, the National Bank recently identified crypto assets and stablecoins as new financial stability threats.
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