Cross-border payments in Africa remain slow and costly, with businesses often losing time and up to 10% in charges due to outdated global banking systems. While local payment networks thrive, international transactions remain gated, inefficient, and risk-averse. Enter stablecoins—blockchain-based digital currencies pegged to fiat currencies like the US dollar—which offer instant, programmable, and borderless payments. With over $250 billion in market cap, stablecoins like USDT and USDC are extending the reach of the dollar, even outpacing traditional financial institutions in some areas. Wale Ayeni argues that Africa must build its own locally denominated stablecoins to stay in control. Without this, the continent risks losing monetary sovereignty to decentralized, global platforms already shaping the future of finance.
The Conversation
