I. Introduction

1.1 Africa’s Digital Economy

As the global digital economy rapidly advances, Africa stands at a crossroads where digital transformation is key to driving economic change and sustainable development. Africa, with a landmass of over 30 million square kilometers and a population exceeding 1.4 billion as of 2022, is rich in natural resources. According to World Bank statistics, Africa’s GDP in 2022 was approximately $2.98 trillion, maintaining an annual growth rate of over 3%. Meanwhile, a report by Endeavor estimates that the continent’s digital economy was valued at around $115 billion in 2022, accounting for 3.86% of GDP. By 2050, this figure is expected to reach $712 billion. In comparison, Asia’s digital economy accounted for more than 30% of its GDP in 2022. This indicates the immense potential for growth in Africa’s digital economy.

The digital economy encompasses various sectors, including digital finance, digital commerce, and digital education. Digital finance, which merges traditional financial services with digital technology, is especially crucial in Africa, where as much as 66% of the population remains unbanked. Across the continent, individuals and businesses face challenges in accessing payment services, loans, savings, and insurance. However, the number of fintech companies in Africa has surged in recent years. In 2017, African fintech firms raised nearly $200 million in funding, and in 2018, the top 10 fintech companies secured close to $300 million. By 2019, investments in single transactions exceeding $5 million had already totaled more than $580 million. The hottest sectors within Africa’s digital finance industry include mobile payments (digital wallets), online lending, and online remittances. Financial inclusion, which aims to use digital technology to broadly address the issue of access to financial services, presents one of the biggest opportunities within Africa’s digital sector.

Distribution of Major Fintech Companies in Africa (Source: Digital Africa Observatory, Briter Bridges)

According to data from Statista, the scale of mobile payments in Africa is projected to surpass $195 billion by 2024, more than doubling from 2020. The market is expected to maintain a double-digit compound annual growth rate (CAGR) and further expand to $314.8 billion by 2028. Over the past two years, many African countries have achieved record highs in electronic payment volumes. For instance, data from the Central Bank of Nigeria shows that mobile money transactions in the country doubled in 2020, reaching approximately 800 million transactions. Similarly, in South Africa, online commerce grew by about 40% between 2020 and 2021. Digital payments are rapidly becoming a dominant method of payment across the African continent. In 2023, 17% of African consumers used digital payment services daily, while 48% utilized them on a weekly basis.48%。

Scale of Africa’s Digital Payment Market (Source: Statista)

Mobile money is currently the most prominent and fastest-growing form of digital payment in Africa. According to GSMA’s “The State of the Industry Report on Mobile Money,” the number of registered mobile money accounts in Africa reached 856 million in 2023, representing 49% of global registered accounts. Africa added 136 million new accounts, accounting for over 70% of global account growth, making it the primary driver of mobile money growth worldwide.

Currently, Africa hosts approximately 169 mobile money services, including popular platforms like M-PESA, Airtel Money, Orange Money, MTN Mobile Money, Ecocash, and Tigo Pesa. These platforms enable users to save, transfer, and receive money using their mobile phones, offering a convenient alternative to traditional banking, especially in regions with limited banking infrastructure. Beyond improving financial inclusion and access to other digital services, the adoption, usage, and growth of mobile money have also contributed significantly to Africa’s macroeconomic growth. In Sub-Saharan Africa, mobile money has contributed over $150 billion to GDP growth, with a contribution rate of 3.7%. In East Africa, the contribution rate to GDP growth is even higher, at 5.9%.

The contribution of mobile money to GDP in different regions (Data source: GSMA)

Digital commerce, also known as e-commerce, faces challenges in Africa due to insufficient infrastructure, late development, and incomplete systems. However, the continent’s large population base, high proportion of young people, and vast growth potential have attracted a wave of international investors. According to Statista, Africa’s e-commerce market is expected to generate $49.02 billion in online retail revenue in 2023, with an annual growth rate close to 14%. By 2027, Africa’s e-commerce user base could soar to 600 million, with a penetration rate of 44.3%. This expansion offers numerous benefits, including economic growth, job creation, and improved access to goods and services in remote rural areas.

Africa’s e-commerce industry is redefining traditional supply chains and business models. For example, Kenya’s Twiga Foods sources products directly from farmers and efficiently delivers them to urban retailers, simplifying the agricultural value chain. Egypt’s MaxAB is a platform that connects food and grocery retailers with suppliers in underserved areas. These innovations add diversity to Africa’s e-commerce solutions. Additionally, the Pan-African Payment and Settlement System (PAPSS) facilitates payment transactions across Africa without relying on correspondent banks outside the continent. With over 10 countries and commercial banks adopting PAPSS, the e-commerce industry is set to experience significant growth.

Furthermore, the digital economy plays a vital role in various traditional sectors such as logistics, agriculture, education, energy, and transportation. It drives both economic and technological development, enhancing inclusivity and fostering innovation. For example, in Nigeria’s Lagos and Kenya’s Nairobi, companies like Kobo360 and Lori Systems have introduced digital technology into the traditional road transport market. This has improved the efficiency and reliability of the entire process while reducing truck idle rates, leading to a 50% or more increase in income for most drivers collaborating with these platforms. In the past, factors like a lack of teachers, tuition fees, gender gaps, safety concerns, long distances to schools, and limited smartphone penetration were major barriers to education in Africa. To address these challenges, Kenyan edtech company Eneza Education provides services through USSD and SMS for users with feature phones. According to its official website, Eneza Education’s user base has grown to 4.9 million, sending over 1 million messages daily, with students answering more than 10 million questions and asking over 1 million questions cumulatively.

1.2 Stablecoins

1.2.1 The Stablecoin Market in Africa

The adoption of cryptocurrencies in Africa is undergoing rapid growth. According to a report by Chainalysis, Nigeria ranks second globally in the cryptocurrency adoption index, just behind India and ahead of countries like the United States and other Western nations. Stablecoins play a dominant role in this cryptocurrency adoption. From July 2022 to June 2023, the value of cryptocurrency transactions in Sub-Saharan Africa reached $117.1 billion, with stablecoins accounting for over 50% of all assets, significantly surpassing BTC, ETH, and other cryptocurrencies.

Cryptocurrency Monthly Transaction Volume by Asset Type in Sub-Saharan Africa, 2023 (Source: Chainalysis)

Taking Nigeria, Africa’s largest crypto economy, as an example, in 2022, the Central Bank of Nigeria announced plans to redesign its legal currency (NAIRA) and issue new banknotes to combat inflation and exert more control over the money supply. Unfortunately, the resulting cash shortage placed enormous pressure on the unbanked population in early 2023. This uncertain economic environment in Nigeria drove more citizens to seek financial alternatives, leading to an increased holding of cryptocurrencies, particularly stablecoins.

Bitcoin and stablecoin volume received by Nigerian exchanges (Source: Chainalysis）

1.2.2 Stablecoin Applications in Africa

a. Remittances

Over the past few decades, remittances to the African continent have steadily increased, yet Africans continue to face high remittance costs. According to the United Nations Development Programme (UNDP), in the second quarter of 2022, the cost of sending $200 to Africa was as high as 7.8%, significantly above the global average of 4% to 6.4%. Utilizing cryptocurrencies for remittances can drastically reduce these costs — sometimes to as low as one-twentieth of traditional methods. For example, Nigeria’s SureRemit charges between 0% and 2% for remittances. Additionally, using stablecoins for remittances can help avoid potential losses from asset price volatility. African crypto platforms like Paxful, BuyCoins, Luno, and Quidax have seen a significant increase in stablecoin transactions for remittance purposes in recent times.

Remittance Costs (Source: UNDP)

b. Cross-Border Trade

Using stablecoins for cross-border trade offers the benefits of low fees and fast transaction times. In traditional cross-border trade, banks play a crucial role. However, since Africa’s trade sector is predominantly composed of small and medium-sized enterprises (SMEs), increasing regulatory scrutiny, risk management, KYC (Know Your Customer) requirements, and exchange rate risks have led to a decline in bank-supported trade activities. Additionally, Africa’s underdeveloped financial infrastructure often relies on international banks, which limits trade growth. Stablecoins, combined with blockchain-based smart contracts, can effectively address these challenges.

c. Financial Inclusion

According to the United Nations Development Programme (UNDP), as of 2021, about 60% of the population aged 15 and older in sub-Saharan Africa did not have a bank account (compared to the global average of 26%). The percentage of women without bank accounts was 12% higher than that of men. In terms of financial infrastructure density, Africa has an average of just 4.5 commercial banks per 100,000 people, significantly lower than the global average of 10.8.

Many cryptocurrency service providers are integrating resources across various industries to offer more comprehensive services to populations lacking basic financial access. For instance, Nigeria’s SureRemit not only provides money transfer and remittance services but also partners with over 1,000 merchants globally, allowing users to purchase goods, pay school fees, settle utility bills, and make donations through blockchain-based payment solutions. This approach addresses the challenges faced by the unbanked population.

Furthermore, statistical data shows a clear inverse relationship between mobile money account ownership and the percentage of adults who have never held a financial account. Countries with higher mobile money account ownership demonstrate greater financial inclusion.

Cryptocurrency Improves Financial Inclusion (Source: UNDP)

d. Value Preservation and Inflation Protection

Many African countries have long suffered from high inflation rates, often in the double digits, which significantly exceed global averages. The currencies of these nations face continuous and severe depreciation. The situation worsened after the COVID-19 pandemic. In 2021, due to supply chain crises and resource shortages, the overall inflation rate in sub-Saharan Africa rose by 3%.

Using stablecoins pegged to the U.S. dollar or other stable assets as a reserve can effectively address this issue. Stablecoins provide a hedge against local currency depreciation, offering a more stable store of value. Many major centralized exchanges now offer stablecoin savings services to African users, allowing them to preserve the value of their assets in a volatile economic environment.

Inflation Rates in Selected Sub-Saharan African Countries (Source: UNDP)

1.2.3 Major Stablecoins in Africa

In Africa, several stablecoins are commonly used:

a. Tether (USDT): Currently the largest stablecoin by market capitalization (over $110 billion), USDT is the most widely used stablecoin in Africa and globally. According to Christopher Maurice, founder of Yellow Card, a leading African cryptocurrency exchange, USDT on the Tron network is among the most popular cryptocurrencies across Africa. Many Africans prefer using stablecoins like USDT, which are pegged to the U.S. dollar, on low-cost networks such as Tron to avoid domestic inflation.

b. USD Coin (USDC): USDC is the second-largest U.S. dollar-pegged stablecoin by market capitalization, issued by Circle. Like USDT, USDC is actively expanding in Africa. In January 2024, Coinbase partnered with Yellow Card to extend its product offerings to 20 new African countries, focusing on increasing the use of USDC. This move will help millions of users access USDC and facilitate faster, more reliable, and cost-effective transactions through Coinbase and Yellow Card on the decentralized, open L2 Base network.

c. WSPN USD (WUSD): Issued by the stablecoin infrastructure company WSPN, WUSD aims to provide a safer, more efficient, and transparent payment solution by establishing a global compliance system and a new payment ecosystem. In July 2024, WSPN formed a strategic partnership with CanzaFinance, a pioneering African fintech company. The integration of WUSD with CanzaFinance’s ecosystem enables users to conduct various financial transactions, including remittances, payments, and savings, and enjoy seamless exchange between WUSD and African fiat currencies, thereby accelerating the adoption of real-world assets (RWA) and decentralized finance (DeFi) solutions in emerging markets like Africa.

d. PayPal USD (PYUSD): PYUSD is a U.S. dollar-pegged stablecoin issued by PayPal, the world’s largest third-party payment platform.

e. Celo USD (CUSD): CUSD is a U.S. dollar-pegged stablecoin issued by Celo. Unlike the aforementioned stablecoins, CUSD is backed primarily by cryptocurrencies, including BTC, ETH, and Celo. In 2023, Celo partnered with Opera to launch the MiniPay stablecoin wallet, initially promoted in Nigeria. This wallet is integrated with Opera Mini, a mobile browser, and aims to help African mobile internet users access Web3 products. Opera’s mobile payment service, OPAY, is also a major provider in Africa with over 35 million registered users.

1.2.4 Regional Differences

The digital economy in Africa exhibits significant regional disparities. As of 2023, there are 856 million mobile money accounts across the continent, with a transaction volume of $919 billion. East and West Africa lead in mobile money development, with active accounts in these regions accounting for 85% of the total in Africa and transaction volumes representing 90.8%. Historically, East African countries had a stronger initial infrastructure, while West African nations have seen the fastest growth over the past decade.

2023 African Mobile Money Overview (Source: GSMA)

Regional Share of Active Mobile Money Accounts in Africa (2013–2023) (Source: GSMA)

a. West Africa: In West African countries such as Nigeria, Ghana, and Senegal, the cryptocurrency economy is developing rapidly. According to a 2020 Statista survey, 32% of Nigerians have used or owned cryptocurrency, the highest proportion globally. Nigeria is also the leading African country in cryptocurrency reception in 2023, with over $56 billion received. This is partly due to the depreciation of the Nigerian Naira and Ghanaian Cedi, high domestic inflation, and a strong demand for safer, stable U.S. dollar-pegged assets. Additionally, Nigeria, being the largest population and economy in Africa, accounts for 38% of remittance flows in sub-Saharan Africa, creating substantial remittance and payment needs.

b. East Africa: East African countries such as Kenya, Tanzania, and Mauritius are also active in the cryptocurrency space. M-Pesa, Kenya’s largest mobile payment platform, enables users to perform cross-border payments, short-term loans, salary payments, bill payments, and wealth management through mobile phones and networks. This has significantly improved the financial experience for those lacking traditional financial services, thereby indirectly enhancing Kenya’s overall living standards and economic conditions.

c. Southern Africa: In Southern Africa, particularly South Africa, the cryptocurrency industry has seen rapid development. In addition to providing cheaper and faster remittance options, South Africa’s well-developed financial infrastructure means that over 80% of the population has bank accounts, and there is relatively high financial literacy. Cryptocurrency and stablecoin adoption in this region are more focused on investment. A study by cryptocurrency exchange KuCoin reveals that approximately 22% of South Africa’s adult population (7.6 million people) are cryptocurrency investors, with many preferring digital assets as their primary savings method to achieve stable returns.

1.2.5 Growth Prospects

The rapid growth of e-commerce, widespread adoption of digital services, revolutionary developments in mobile payments, and the uneven development across African countries are all set to drive the role of stablecoins in Africa’s digital economy and financial system.

• E-Commerce Boom: Africa’s e-commerce market is growing at an extraordinary pace, projected to reach $939.8 billion by 2030. Local platforms like Jumia (the first African tech company listed on the NYSE) and Konga are rising, while international giants like Amazon are also making significant inroads into the African market. This growth is largely driven by Africa’s demographic dividend, with the continent being one of the fastest-growing regions in terms of population. Africa’s current population exceeds 1.2 billion and is expected to reach 2.5 billion by 2050. This large population base provides immense consumer potential. A high proportion of young people, increasing internet penetration, and shifting consumer habits towards online shopping lay a solid foundation for e-commerce development. Additionally, substantial investments in internet infrastructure by African governments and private enterprises have improved fiber and mobile network coverage. The proliferation of smartphones is also accelerating, with smartphone users in Africa expected to reach 675 million by 2025. The success of mobile payment platforms like Kenya’s M-Pesa has further driven the adoption of cashless payments. Enhanced payment systems have improved the convenience and security of online shopping, boosting e-commerce growth.
• Digital Payments: Africa currently has 1.22 billion mobile network users, with 676 million smartphone users (55.32%). Major mobile payment platforms such as M-PESA, Airtel Money, Orange Money, and MTN Mobile Money are widely popular, offering convenient financial services and addressing the needs of unbanked populations. The value of Africa’s digital payments market is expected to grow to $314.8 billion by 2028.
• Growth in Other Digital Services: Online education and telemedicine are also rapidly expanding. According to Expert Market Research, Africa’s e-learning market is projected to reach $20.35 billion by 2028, with a compound annual growth rate (CAGR) of 39.2% from 2023 to 2028. This growth is driven by increased demand for online education and training solutions, rising mobile device usage, and government initiatives to promote digital education. The healthcare market in Africa is expected to grow at an annual rate of 8.3%, reaching $259 billion by 2025. The rapid rise of digital health solutions, such as mobile health apps, telemedicine services, and electronic health record systems, provides new ways to improve healthcare accessibility and quality.
• Economic Challenges: Despite the rapid growth of the digital economy, Africa faces challenges such as high inflation rates, currency volatility, low bank service coverage, and weak financial infrastructure. Stablecoins offer a relatively stable medium of exchange, helping African individuals and businesses navigate these economic challenges.

2. How Stablecoins Support Africa’s Digital Economy

Stablecoins are designed to maintain relatively stable values, with widely circulated examples such as USDT and USDC pegged to the US dollar. Given that the US dollar is the most significant currency in global trade and maintains overall stability relative to major national currencies, using dollar-pegged stablecoins can effectively mitigate the risk of currency fluctuations in African countries. Due to unstable monetary policies and high inflation, many African currencies have been in a long-term depreciation trend against the dollar.

Enhancing Cross-Border Trade and Financing

In traditional cross-border trade, banks play a crucial role by offering services like payment settlements, trade financing, risk management, and foreign exchange transactions. Small and medium-sized enterprises (SMEs) dominate economic activities and cross-border trade in African countries, making trade financing essential for importers and exporters. Historically, bank-mediated trade financing has accounted for an average of 40% of Africa’s total trade over the past decade. However, stricter KYC, anti-money laundering, and risk-based capital regulation requirements have led to a steady decline in bank-supported trade financing, disproportionately reducing support for SMEs. Additional factors like liquidity constraints, currency risks, credit risks, and time and currency costs further challenge trade financing in Africa.

Stablecoins can significantly address these issues by facilitating instantaneous payments through blockchain technology, enabling quicker funds transfer between supply chains, buyers, shipping companies, and sellers. SMEs engaged in cross-border trade can obtain funds from banks and other financial institutions more swiftly, ensuring liquidity. Stablecoins like USDT and USDC are already being reported as utilized in international trade by African SMEs. Furthermore, decentralized finance (DeFi) systems based on stablecoins offer relatively mature financial products and services, such as lending and deposits. This untapped trade financing potential can encourage SMEs to engage more in intra-African and regional trade opportunities within entities like ECOWAS, SADC, and IGAD.

Integrating with Mobile Payments

Integrating stablecoin applications with existing mobile payment platforms can enhance transaction efficiency and reduce costs. The use of stablecoins significantly lowers payment costs and time, which is a considerable attraction for users. Additionally, it enhances financial inclusion by providing access to broad financial services for unbanked populations through stablecoins and the DeFi systems built upon them.

Improving Digital Services

The low-cost and rapid transaction characteristics of stablecoins can further enhance various aspects of digital services, leading to increased user growth. In micropayments, stablecoins reduce transaction costs, making small transactions more economical. This is particularly important in Africa, where traditional payment methods are costly, and quick transaction speeds enable near-instantaneous payments — a crucial factor for micropayment scenarios where users prefer seamless transactions.

In subscription services, stablecoins can simplify the payment process by allowing users to set up automatic payments once, avoiding the need for manual transactions each time. This is especially useful for African users who may prefer mobile device operations. Additionally, stablecoins reduce the risk of payment failures due to currency fluctuations, ensuring consistent service delivery. Stablecoins can also be used for various digital services such as in-game purchases, online education, and health services, providing a smooth payment experience and encouraging African developers and service providers to explore new business models, including micropayment-based revenue models. They also contribute to regional economic integration, fostering trade and investment within Africa.

3. Challenges Facing Stablecoin Adoption in Africa

The large-scale adoption of stablecoins in Africa still faces several challenges, including government regulation, compliance, infrastructure, public concerns, and confidence.

Regulation and Compliance:

Currently, most African countries are still in the exploratory phase regarding cryptocurrency regulation, lacking clear legal and asset definitions. Governments are primarily concerned with financial stability risks, particularly how to manage the relationship between non-local currency-pegged stablecoins and local currencies. For instance, the Central Bank of Nigeria is concerned that widespread adoption of stablecoins could undermine its control over monetary policy, leading to capital outflows and further devaluing the naira. Some stablecoins are pegged to assets like the US dollar, and if the reserves backing these stablecoins are not properly managed, they could trigger potential financial panic, introducing instability into the financial system, especially when stablecoins are widely used for transactions or savings. Additionally, anonymity associated with some cryptocurrencies could facilitate criminal activities, such as money laundering or funding illegal transactions, affecting financial stability and security. Clearly, a well-defined regulatory framework and legal safeguards for stablecoins are crucial for their development.

Cryptocurrency Regulatory Status in Sub-Saharan African Countries (Source: UNDP)

Limited Infrastructure:

The development of the digital economy relies heavily on mobile networks (4G/5G) and internet connectivity. Currently, Africa’s 4G network coverage is around 50%, which is below the global average, and some regions still rely on outdated 2G networks. While internet penetration is relatively high in more developed countries like South Africa, the overall internet penetration rate in Africa stands at approximately 30%. This limited infrastructure poses a significant challenge to the growth of the digital economy and the broader adoption of stablecoins across the continent.

Global Mobile Network Coverage (Source: International Telecommunication Union)

Percentage of Internet Users as a Proportion of the Population (Source: World Bank)

Social Concerns and Education:

The anonymity associated with cryptocurrency transactions often raises concerns about criminal activities. Social engineering scams, phishing attacks, and fraudulent investment schemes targeting stablecoins can significantly impact newcomers. Individuals living in rural areas or those with limited exposure to technology may be less familiar with stablecoins or cryptocurrencies, which can hinder widespread adoption and make them more vulnerable to fraud or misinformation. Understanding how stablecoins work, along with their risks and benefits, requires a certain level of financial literacy. This underscores the need for increased awareness campaigns and targeted basic financial education by governments or relevant institutions. Additionally, even stablecoins pegged to fiat currencies may experience some level of price volatility, which can create apprehension among potential users, especially those unfamiliar with the cryptocurrency market or with limited financial resources.

4. Case Studies

OnAfriq (MFS Africa)

OnAfriq (formerly MFS Africa) is Africa’s largest cross-border payment platform, founded in 2009, dedicated to driving the continent’s digital economy through digital payment solutions and financial services. With branches in key economies such as Nigeria, South Africa, and Ghana, its core offerings include digital wallets, cross-border payment solutions, stablecoin services, and fintech products.

As of 2024, OnAfriq serves over 500 million users across more than 40 African countries. Individual users leverage OnAfriq for daily transactions, cross-border remittances, and micro-payments, while businesses utilize its cross-border payment solutions and merchant collection services, especially for transactions with overseas suppliers and customers. The platform supports multiple stablecoins, including USDC, USDT, DAI, and EURC, and has issued AfriqCoin, a USD-pegged stablecoin specifically for cross-border payments, with transaction fees as low as 0.5% to 1%.

OnAfriq collaborates with international financial institutions and local banks, including Visa, Mastercard, Ecobank, and Stanbic Bank, and partners with stablecoin provider Circle to leverage the stability and broad acceptance of USDC to expand its operations in Africa. The platform supports USDC payments, transfers, and storage, and offers DeFi products such as high-yield deposits, lending, and asset management.

OnAfriq has significantly enhanced financial inclusion in Africa, with over 500 million digital wallet users, most of whom were previously unbanked. The platform has provided financial education and training to over 1 million people, helping improve financial literacy. By utilizing its digital payment platform and stablecoins like AfriqCoin, OnAfriq has improved cross-border payment efficiency, reduced costs, and boosted intra- and extra-regional trade, cutting processing times to as little as two minutes. Additionally, OnAfriq offers payment gateway services to local e-commerce platforms and merchants, supporting online transactions and the development of digital marketplaces. Looking ahead, OnAfriq plans to launch more innovative products, such as digital insurance and decentralized finance loans, to continue advancing Africa’s digital economic transformation.

AZA Finance

AZA Finance, founded in 2013, is a leading fintech company in the African market, specializing in cross-border payment and foreign exchange solutions. By leveraging its innovative technology platform, the company has optimized cross-border payment processes, enhancing liquidity between Africa and other global regions. As of 2024, AZA Finance’s platform has processed over 15 million transactions, totaling $9 billion in value, with more than 1.5 million users across 183 countries.

AZA Finance’s cross-border payment solutions have supported the implementation of the African Continental Free Trade Area (AfCFTA). By streamlining cross-border payment processes and reducing transaction costs, AZA Finance has provided strong support for trade activities among AfCFTA member countries, thereby promoting regional economic integration in Africa.

On its payment platform, AZA Finance supports both USDC and USDT. In 2023, stablecoins accounted for 30% of the total transaction volume on the platform, reflecting strong demand and acceptance of stablecoins in the market.

WSPN

WSPN (Worldwide Stablecoin Payment Network) is a global digital payments company dedicated to advancing future digital payments and financial inclusion by providing transparent, fast, and efficient digital payment solutions powered by the latest Distributed Ledger Technology (DLT). The company successfully raised $30 million in its seed round, with notable investors including Foresight Venture and Folius Ventures.

Within the global digital payments landscape, WSPN has achieved a significant milestone in its globalization strategy by entering the African market through an innovative partnership with the AA wallet, StableWallet. This collaboration has laid a solid foundation for WSPN’s market penetration and financial inclusion objectives in Africa.

Through diverse promotional activities, the partnership between WSPN and StableWallet has attracted a substantial number of new users to register and use WUSD. These users not only benefit from the convenient payment functions of WSPN’s stablecoin but also enjoy generous WUSD rewards.

Additionally, WSPN plans to further enhance user experience and promote WUSD adoption in the African market by collaborating with more projects and introducing innovative features like Telegram mini-app communities. The wallet, leveraging account abstraction technology, makes WUSD even easier to use and offers users a seamless cross-chain payment experience.

This collaboration has proven WSPN’s success in the African market, as evidenced not only by the rapid growth in user numbers but also by its ability to bring financial inclusion to local markets through stablecoin technology. Moving forward, WSPN will continue to drive digital payment innovation in Africa and other global markets by working with partners worldwide, building a more transparent, efficient, and user-friendly digital payment ecosystem.

Future Outlook:

The success of OnAfriq, AZA Finance, and WSPN demonstrates how stablecoins can improve financial services and drive economic development in Africa. For other industries and tech companies in Africa, the key entry points lie in the following areas:

1. Enhancing Financial Infrastructure: Developing local blockchain infrastructure to increase transaction processing capacity and security is crucial to supporting more stablecoin transactions. Additionally, promoting interoperability among financial institutions and strengthening collaboration between banks and non-bank financial institutions will help create a more extensive payment network. Encouraging the adoption of digital wallets that support stablecoin storage and transfers, while gradually introducing DeFi and other on-chain financial infrastructures, can improve convenience and usability.
2. Advancing Policy and Regulatory Frameworks: Like AZA Finance, which supports stablecoin payments while adhering to international and local financial regulations, it’s essential to encourage governments to establish clear guidelines for stablecoin usage and transactions. This will ensure legal operating space and prevent illegal activities. Promoting regional cooperation to develop common regulatory standards is also important for legalizing and standardizing cross-border stablecoin payments.
3. Increasing Public and Business Awareness and Acceptance of Stablecoins: OnAfriq’s extensive user education and promotional efforts have raised public awareness and acceptance of stablecoins. Conducting both online and offline educational activities, media campaigns, and financial literacy programs can help the public understand the benefits and usage of stablecoins. Collaborating with local businesses to encourage them to accept stablecoins as a payment option will further increase stablecoin usage in commercial transactions. Promoting the use of stablecoins in everyday transactions, such as bill payments and purchasing goods and services, can further drive their adoption in daily life.
4. Strengthening Collaboration and Building Strong Partnerships: OnAfriq’s collaboration with global stablecoin issuer Circle has enhanced its competitiveness in the global payment market. Partnering with stablecoin issuers like Circle and Tether to introduce more stablecoin options can broaden application scenarios. Collaborating with blockchain and fintech companies to improve technical capabilities and optimize payment and transaction systems is also essential. Establishing relationships with international financial institutions will help promote stablecoin usage and expand the global payment network.

5. References

New report from Endeavor Nigeria says Africa’s technology ecosystem is poised for exponential growth

https://nigeria.endeavor.org/new-report-from-endeavor-nigeria-says-africas-technology-ecosystem-is-poised-for-exponential-growth/

Digital Empowerment in Africa

https://36kr.com/p/1725093740545

Research: Africa’s Digital Payment Market Is Set to Surpass $195 Billion

https://m.mpaypass.com.cn/news/202408/09111348.html

《The State Of The Industry Report On Mobil Money》 — — GSMA

https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf

The 2023 Geography of Cryptocurrency Report — — Chainalysis

https://go.chainalysis.com/geography-of-cryptocurrency-2023.html

Cryptocurrency in Africa — — UNDP

https://www.undp.org/africa/publications/cryptocurrency-africa-alternative-opportunities-advancing-sustainable-development-goals

Stablecoins find a use case in Africa’s most volatile markets

https://restofworld.org/2021/stablecoins-find-a-use-case-in-africas-most-volatile-markets/

fintech and crypto assets in the central african republic — — IMF

https://www.elibrary.imf.org/downloadpdf/journals/002/2023/156/article-A001-en.xml

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