"On a Tuesday morning in Nairobi, Amina invoices a client in Berlin. By the afternoon, USDC has landed in her wallet, and within minutes, she cashes out to M-Pesa. What once felt experimental is now routine, thanks to services like Kotani Pay that tie stablecoins to mobile money. Across the continent in Lagos, Chinedu runs a small shop and keeps his working capital in Tether's USDt."
"Holding digital dollars means he can restock imports without watching his margins vanish to the naira's volatility. He is hardly an outlier. Between July 2023 and June 2024, Nigeria alone processed nearly $22 billion in stablecoin transactions by far the largest volume in Sub-Saharan Africa. The draw is economic. Sending money into the region through traditional remittance channels still costs an average of 8.45% (Q3 2024), while digital-first operators have brought fees closer to 4%."
"The macro squeeze: Inflation, FX and remittance friction Nigeria's cost-of-living crisis hasn't disappeared. Inflation has eased from early-2025 highs but remains punishing, with the headline consumer price index (CPI) at 21.88% in July 2025, well above target and steadily eroding purchasing power. Currency reforms since 2023, including multiple devaluations and a shift toward a more market-driven FX regime, have only heightened short-term"
Stablecoins function as everyday tools for savings, payments, and trade in Nairobi and Lagos, enabled by mobile-money integrations such as Kotani Pay and M-Pesa. Entrepreneurs and freelancers use USDC and USDt to receive remittances, preserve purchasing power, and manage working capital amid currency volatility. Nigeria processed nearly $22 billion in stablecoin transactions between July 2023 and June 2024, reflecting broad uptake. Traditional remittances average 8.45% fees (Q3 2024), while digital operators approach 4%, increasing savings on $200–$1,000 transfers. Elevated inflation (CPI 21.88% in July 2025), FX devaluations, reserve opacity, scams, and shifting regulations create ongoing risks.
Read at cointelegraph.com
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