Stablecoins have emerged as a dominant force in global payments, with reports of their total transfer value reaching 27.6 trillion in 2024 - eclipsing the combined annual transaction volume of Visa and Mastercard, two of the world's most prominent payment networks. They are a type of cryptocurrency that is pegged to a specific reserve asset. Most are pegged to the US dollar, since it is the world's reserve currency some are linked to other traditional "fiat" currencies. The two largest stablecoins currently available on the crypto market are Tether USDT and USD Coin USDC, both of which claim to be backed 1:1 by US dollars or US Treasury securities.
Unlike volatile cryptocurrencies such as Bitcoin, stablecoins are designed to maintain a constant value that is linked to the underlying reserve asset. Proponents say this makes them ideal for payments, savings and remittances.
Adoption picks up in AfricaStablecoins have gained considerable traction in African markets, where currency depreciation, dollar shortages, inflation and limited access to banking services have pushed many to consider using cryptocurrencies for cross-border transactions and personal savings.