Stablecoins Set to Transform Africa’s Financial Services Landscape
Stablecoins are poised to revolutionize the financial services ecosystem in Africa, particularly in nations grappling with foreign currency access challenges. Michael Berner, Group Country Manager for Southern and Eastern Africa at Visa, conveyed this insight during the recent Visa Payments Forum.
Key Trends in the African Payments Landscape
The 2026 Visa Payments Forum for the Central and Eastern Europe, Middle East, and Africa (CEMEA) region took place in Paris earlier this month. The forum gathered industry partners to discuss the future of payments and explore emerging financial services. Berner highlighted the significant trends shaping the African digital payments landscape, including the rise of stablecoins, artificial intelligence (A.I.), and the emergence of new players in the financial sector, all contributing to greater financial inclusion.
Accelerating Digital Payment Trends
Berner noted that the move towards cashless transactions continues to gain momentum across Africa, driven by government initiatives, the expectations of financial institutions, and the preferences of Gen Z consumers. He emphasized the importance of making payments seamless, ‘invisible,’ and secure against fraud.
The Challenge of Foreign Exchange Reserves
Foreign exchange reserves pose significant obstacles for various African nations. Berner explained that introducing stablecoins can enhance financial inclusion across the continent. The growing interest in stablecoin products, such as stablecoin-backed cards and payment mechanisms, is already evident in countries like Kenya.
Visa’s Role as a Bridge in Financial Transactions
At the same event, Oliver Jenkin, President of Global Markets at Visa Group, shared his optimistic outlook for the blockchain and stablecoin sectors, acknowledging that they are still in their formative stages. Jenkin articulated Visa’s commitment to bridging the gap between cryptocurrencies, stablecoins, and traditional fiat currencies, facilitating the transition to a more modern payment framework.
Advancements in Payment Systems through Stablecoins
Visa is actively working on modernizing payments through the integration of stablecoins and blockchain technology. The company plans to develop a technology layer that will enable banks to transform traditional deposits into programmable digital money via tokenized deposits, thereby aligning with the speed and responsiveness of stablecoins while keeping assets on balance sheets. Visa is also expanding its stablecoin payments pilot across diverse regions, blockchains, and currencies, with an anticipated annual run rate of approximately $7 billion by March 2026.
Growing Adoption of Stablecoins in Africa
The stablecoin sector is garnering substantial attention from governments, banks, and payment providers, due to its potential to enhance digital payment systems. According to projections, stablecoin trading volume is expected to reach $33 trillion globally by 2025, marking a significant 70% year-on-year increase. Notably, Nigeria and South Africa lead the race in stablecoin adoption within Africa, as trading activity continues to accelerate across the continent.
Impacts of Currency Volatility and Consumer Behavior
The 2026 Stablecoin Utility Report, prepared by YouGov for fintech company BVNK and developed in collaboration with Coinbase and Artemis, surveyed over 4,600 early adopters in 15 countries. The findings suggest a shift in consumer behavior towards stablecoins, facilitating faster, more secure, and cost-effective transactions. In Africa, 79% of respondents reported owning a stablecoin, the highest global ownership rate, with 76% expressing intent to acquire stablecoins soon. Daily spending on stablecoins is particularly prominent in Nigeria and South Africa. Furthermore, the appetite for receiving incomes in stablecoins is strong, with 95% showing interest in being paid through digital assets linked to the dollar.
