• Study finds nearly 80% of respondents in both markets already hold stablecoins

• Users cite faster, cheaper payments as digital dollars gain traction over local currencies

• Central banks warn of rising digital dollarisation and risks to monetary control

Demand for stablecoins is accelerating sharply in Nigeria and South Africa, underscoring how Africa’s two largest economies are emerging as key growth markets for dollar-pegged digital assets even as regulators voice mounting concerns over financial stability.

A new “Stablecoin Utility Report” conducted by YouGov in partnership with BVNK, Coinbase and Artemis shows that close to 80% of respondents in both countries already hold stablecoins, with more than three-quarters planning to increase their exposure over the next year. The findings point to rising confidence among users despite persistent caution from monetary authorities.

Stablecoins are cryptocurrencies typically backed by traditional currencies, most commonly the US dollar. Market leaders Tether and USD Coin dominate a global sector valued at more than $310 billion, offering holders a digital proxy for the dollar that can be transferred instantly across borders.

In economies where banking access remains uneven and cross-border payments can be slow and expensive, stablecoins are increasingly viewed as a practical alternative. In Nigeria, 95% of respondents said they would prefer to receive payments in stablecoins rather than in naira, highlighting a strong appetite for dollar-linked instruments in a country grappling with currency volatility and inflationary pressures.

Yet everyday usage remains limited. Consultancy BCG estimated last year that roughly 90% of stablecoin transactions are tied to cryptocurrency trading, with only a small fraction used to pay for goods and services. Limited merchant acceptance continues to constrain broader commercial adoption.

The rapid growth has nonetheless sharpened policy debates. Central banks fear that widespread use of dollar-backed digital tokens could accelerate a form of digital dollarisation, weakening the effectiveness of domestic monetary policy and potentially fuelling capital outflows. Lesetja Kganyago, governor of the South African Reserve Bank, has acknowledged that such technologies could help reduce the high cost of regional remittances, particularly within southern Africa. But authorities across the continent remain wary that the benefits of faster, cheaper payments must be weighed against the risks to financial sovereignty and systemic stability.

Fiacre E. Kakpo