Categories: News

Can Africa harness stablecoins without losing control?

Stablecoins are rapidly gaining traction across Africa, promising faster payments, cheaper remittances, and broader financial inclusion in countries grappling with inflation and currency volatility.

Yet beneath the excitement lies a growing concern: most stablecoins are pegged to the US dollar, raising the risk of deepening dollarization and eroding the monetary sovereignty of African nations.

By turning smartphones into gateways for “digital dollars,” stablecoins can bypass banks, regulatory capital controls, and central bank oversight.

As US regulation strengthens trust in dollar-backed tokens, African economies such as Nigeria and Kenya could become even more dependent on foreign-controlled financial systems.

Experts argue that African countries must strengthen their own currencies through sound fiscal policy and consider launching sovereign digital alternatives, such as central bank digital currencies or commodity-backed regional stablecoins, to counter this.

Montage Africa

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