Stablecoins Seen as Lifeline for Africa’s Broken Payments System

Mary Nnah

Across Africa, sending money is still too slow, too expensive, and too dependent on scarce foreign exchange.

Currency swings wipe out savings, remittance fees cut deep into what families receive, and many businesses struggle to access dollars for basic operations.

It is in this gap that stablecoins are beginning to find real traction, not as speculative assets but as digital dollars being used for everyday payments.

Osaro Jackson, a fintech and payments executive with experience across African cryptocurrency markets, says the continent is witnessing a clear shift from crypto trading toward practical financial use.

According to him, merchants are now holding USDT to protect value against local currency depreciation, freelancers are receiving payment in stablecoins from overseas clients, and cross-border traders are settling deals faster with dollar-denominated digital assets.

He described the trend as evidence that adoption is being driven by utility rather than speculation, and that stablecoins are increasingly playing a role in solving structural problems within African financial systems.

Jackson argues that stablecoin providers and traditional payment companies do not have to be competitors. He noted that banks and established payment firms bring distribution networks, customer relationships, regulatory experience and institutional connections, while stablecoin infrastructure brings faster settlement, multi-currency rails and alternative channels for moving money across borders. When combined, he said, the result could be payment services that are cheaper, quicker and able to reach more people. Traditional providers that integrate stablecoin rails could offer faster transfers, while stablecoin companies could gain access to banked customers and compliance systems through partnerships.

One of the most immediate opportunities lies in remittances. Jackson pointed out that international transfers still attract high fees and can take days to clear, leaving families waiting for funds. Stablecoin-based infrastructure could change that by allowing recipients to access money more quickly and at lower cost, opening up markets that have long been expensive or difficult to serve. Beyond remittances, he said the same infrastructure could support merchant payments, business-to-business transactions and treasury management for companies that need to hold dollars.

The pace of adoption will however depend heavily on regulation. Jackson highlighted developments in Nigeria, South Africa, Kenya and other markets as signs that governments are paying closer attention to digital assets and payment infrastructure.

He said regulators have an opportunity to create frameworks that allow stablecoin firms and traditional financial institutions to work together while maintaining strong standards for consumer protection, know-your-customer and anti-money-laundering compliance.

In his view, pairing the compliance strength of banks with the technology of stablecoin providers is the safest path to wider adoption.

For Jackson, this moment represents a broader evolution in Africa’s cryptocurrency market.

The focus is moving away from trading and toward applications that solve real problems.

He believes the next phase will be defined by companies that can successfully integrate stablecoin infrastructure with existing payment networks, improving the speed, cost and accessibility of transactions without replacing the institutions people already trust.

As African consumers and businesses continue to demand faster and cheaper ways to move money, he said, those that bridge traditional finance and new technology are likely to lead the future of payments on the continent.