From cross-border payments to savings, everyday users on the continent have been putting crypto to real work. And yet, when most people think about crypto in Africa, they imagine young people trading bitcoin or building Web3 startups. That's part of the story. The full story lies in what is driving this movement, and the answer is far more practical: stablecoins.
Stablecoins are a special kind of cryptocurrency pegged to stable assets like the US dollar, offering predictability that volatile cryptocurrencies cannot. Accessible via mobile phone, stablecoins allow people to store and transfer value that holds. They offer something rare in many parts of the continent: predictability.
Freelancers get paid in USDC instead of waiting days for bank wires. Traders send USDT across borders without losing money to hidden foreign exchange fees. Informal businesses protect income from local currency swings by holding earnings in digital dollars. These practical uses are driven by real needs, speed, safety and lower costs.
Stablecoins are a longstanding solution, offering a faster, safer and often lower-cost complement to traditional systems, especially where access is limited or inefficiencies persist. This is why regulators and policymakers in Africa should urgently focus not just on risks, but on their utility. To scale sustainably, the regulatory environment must evolve alongside this innovation, developing clear, proportional and purpose-built licensing frameworks that safeguard users while allowing innovation to thrive.
In South Africa, for example, crypto is not classified as "money" under current case law, meaning exchange controls do not automatically apply as they do to traditional currencies. This is a chance for African regulators to rethink restrictive models and adopt proportionate frameworks that encourage innovation while protecting users. The history of why exchange controls were introduced should be revisited so that we accurately recalibrate their purpose.