Biggest African economies lead stablecoin demand growth, study shows

Core Insights - Nigeria and South Africa are leading the demand for stablecoins, with users in these countries expressing optimism about their potential and a desire for wider acceptance [1][4]. Group 1: Demand and Usage - The survey indicates that over half of respondents increased their stablecoin holdings in the past year, particularly in developing economies [4]. - Nearly 80% of respondents from Nigeria and South Africa currently hold stablecoins, with over 75% planning to increase their holdings in the next year [4]. - Among non-owners, the intent to start holding stablecoins is significantly higher in low and middle-income economies compared to high-income ones [5]. Group 2: Payment Preferences - 95% of Nigerian respondents prefer to receive payments in stablecoins rather than in the Naira, highlighting a shift towards stablecoin usage for transactions [5]. - The current use of stablecoins is primarily for moving money between cryptocurrency markets, with 90% of transactions related to crypto trading and only 6% for goods and services [3]. Group 3: Market Overview - The global stablecoin market is valued at over $310 billion, with Tether and USDC being the dominant players [7]. - The market is expected to grow further due to regulatory developments in the U.S., such as the GENIUS Act [7]. Group 4: Economic Implications - Central bankers in emerging economies express concerns that stablecoins could undermine monetary policy by draining domestic bank deposits and facilitating capital flight [7]. - However, there are potential benefits, such as reducing high remittance fees, exemplified by the $30 fee to send $100 to Mozambique [8].