Nigeria, South Africa Lead Africa’s Stablecoin Surge As Adoption Nears 80% – Report

Nigeria and South Africa have emerged as Africa’s strongest growth engines for stablecoin adoption, with nearly 80 per cent of surveyed cryptocurrency users in both countries already holding dollar-pegged digital assets, according to a new global report.

The findings, contained in the latest Stablecoin Utility Report conducted by YouGov in partnership with BVNK, Coinbase and Artemis, highlight accelerating demand for stablecoins in Africa’s two largest economies as individuals and businesses seek faster, cheaper and more reliable cross-border payment options.

The survey, which polled more than 4,650 respondents across 15 countries who either hold or intend to hold cryptocurrencies, showed that optimism around stablecoins is particularly strong in Nigeria and South Africa compared with global peers.

More than three-quarters of respondents in both countries indicated plans to increase their stablecoin holdings over the next 12 months.

Nigeria stood out prominently in the report, with about 95 per cent of Nigerian respondents expressing a preference to receive payments in stablecoins rather than in naira.

The finding underscores the growing appeal of dollar-linked digital assets in inflation-prone environments, where currency volatility and foreign exchange constraints have heightened demand for alternative stores of value and mediums of exchange.

Stablecoins are digital tokens designed to maintain a fixed value, typically pegged to the US dollar. As of February 2026, the sector’s market capitalisation exceeds $300bn, positioning it as the primary liquidity backbone of the broader cryptocurrency ecosystem.

Globally, the market remains heavily concentrated in US-pegged tokens, led by Tether with an estimated valuation of about $185bn and USDC at roughly $75bn.

Analysts expect further expansion as regulatory clarity improves in key jurisdictions, including the United States, where proposed legislation such as the GENIUS Act aims to establish clearer rules for stablecoin issuance and oversight.

The report suggests that the primary drivers of adoption in Nigeria and South Africa are practical rather than speculative. Users cited the need for faster settlement times, lower transaction costs and greater reliability compared with traditional banking and remittance channels.

“People are already getting paid and spending stablecoins, especially where traditional payments are slow, expensive, or unreliable,” said BVNK co-founder Chris Harmse. He added that users are increasingly seeking deeper integration of stablecoins into existing financial tools and payment infrastructure.

In South Africa, the potential efficiency gains in cross-border transfers have drawn attention from policymakers. South African Reserve Bank Governor Lesetja Kganyago recently noted that sending $100 to neighbouring Mozambique can cost as much as $30 in remittance fees, a gap that digital dollar tokens could significantly reduce.

However, the rapid rise of stablecoins has also raised concerns among central banks in emerging markets. Policymakers warn that widespread use of foreign-currency-linked digital assets could accelerate capital flight, weaken domestic currencies, and reduce commercial bank deposits, thereby complicating monetary policy transmission.

Despite strong investor interest and rising holdings, everyday commercial usage remains limited. The report found that nearly 90 per cent of stablecoin transactions are still tied to cryptocurrency trading activities, while only about six per cent are used to pay for goods and services. This suggests that while adoption is growing rapidly, substantial infrastructure and merchant acceptance gaps must be bridged before stablecoins become mainstream payment instruments.

Nevertheless, with adoption levels nearing 80 per cent among crypto users in Nigeria and South Africa, the report concludes that both countries are poised to remain at the forefront of Africa’s evolving digital asset landscape, driven by economic realities that continue to reshape how value is stored and transferred across borders.