Africa's Stablecoin Transactions Reached 6.7% of Its GDP in the Year 2024, According to the IMF
New data from the International Monetary Fund (IMF) reveals that stablecoins, a type of cryptocurrency designed to maintain a stable value, are playing a significant role in Africa's financial landscape.
In 2024, Africa and the Middle East collectively recorded more than $200 billion in stablecoin activity, accounting for 43% of all cryptocurrency transactions in Sub-Saharan Africa. This figure is more than double Bitcoin's share, highlighting the growing preference for stablecoins in the region.
Top Stablecoins in Africa
The top stablecoins used in Africa in 2024 are Tether's USDT and Circle's USDC. USDT dominates the region, accounting for about 57.3% of stablecoin flows. USDC, while less prevalent, still holds a significant share, making up approximately 42.7%.
Key Platforms
Binance is the leading platform for these stablecoin transactions, handling around 74% of the region's centralized exchange-linked stablecoin volume. Coinbase follows closely, accounting for 25.7%.
Top Countries
Nigeria stands out as the largest stablecoin market in Africa, recording nearly $22 billion in stablecoin transactions from July 2023 to June 2024. Other countries like South Africa, Kenya, Ghana, Zambia, Ethiopia, and Uganda also show significant adoption and growth in stablecoin usage.
Uses of Stablecoins
Stablecoins are extensively used for cross-border trade, treasury operations, institutional payments, and as a dollar substitute in markets facing currency volatility, high remittance costs, and limited access to USD via traditional banking systems. Corporate transactions with stablecoins grew by 25% in 2024, especially in cross-border payments and payroll.
In conclusion, stablecoins' high share of crypto transactions (43%) and flow equivalent to 6.7% of Africa’s GDP in 2024 underscore their critical role in the continent's financial ecosystem. The high share of stablecoin flows relative to GDP in Africa underscores the growing role of cryptocurrency in cross-border transactions, particularly in remittances and trade.
Investing in stablecoins, such as Tether's USDT and Circle's USDC, has become popular in Africa, with these digital assets accounting for a significant portion of cryptocurrency transactions in Sub-Saharan Africa. In 2024, Binance was the prime platform for these stablecoin transactions, handling almost 74% of the region's centralized exchange-linked volume. Stablecoins are increasingly used for cross-border trade, treasury operations, institutional payments, and as a dollar substitute in markets facing currency volatility, with Nigeria being the largest stablecoin market in Africa, recording nearly $22 billion in transactions.
