A new report titled “The Rise of OTC and Stablecoins: Africa’s Quiet FX Revolution” which looks into crypto transactions in Sub Saharan Africa has noted that 43% of all cryptocurrency transactions in Sub Saharan Africa are in stablecoins. The growth comes despite 20% of African countries banning crypto.
The findings reveal a surge in the adoption of stablecoins and over-the-counter (OTC) cryptocurrency trading, signaling a major evolution in the region’s financial landscape. The report created by TechCabal Insights, in collaboration with Quidax Technologies FZCO, combines proprietary data and interviews with market leaders to illustrate how stablecoins are reshaping settlement and liquidity flows on the continent.
Global OTC crypto volumes surged by 106% year-over-year in 2024, with much of this growth driven by Africa-focused stablecoin activity. Nigeria emerged as a global leader, ranking second only to India in crypto transaction volumes, with over $59 billion processed last year. Ethiopia and Zambia also experienced remarkable expansion, each recording more than 100% year-over-year growth in stablecoin inflows, underscoring the momentum of adoption across diverse markets.
Though Sub-Saharan Africa (SSA) accounts for only 2.7% of global crypto transactions value of about $4.8 trillion, businesses in Africa are leveraging crypto for payments, as a hedge against inflation, and for more frequent, smaller (i.e. retailsized) transfers. Nigeria, comes atop (after India worldwide) in Crypto adoption while Ethiopia (26), Kenya (28), and South Africa (30) made the top 30, according to
The 2024 Geography of Crypto report by Chainalysis.
Still, much of the growth in Stablecoin in Africa is fueled by transfers under $1 million retail, non-institutional transfers. Latin America and SSA are the fastest growing regions for retail and professional-sized stablecoin transfers, with year-over-year (YoY) growth exceeding 40%.
Recently The Hashgraph Association and Exponential Science launched a Web3 Africa Hackathon with one of the tracks being Financial DEFI solutions that include stablecoins.
