IMF reports Nigeria leads Sub-Saharan Africa in stablecoin use for cross-border payments, cites $59B inflows
IMF reports Nigeria led Sub-Saharan Africa in stablecoin inflows since 2019, receiving about $59 billion in crypto-asset inflows between July 2023 and June 2024. The country ranked second globally in Chainalysis’ 2024 Crypto Adoption Index and sixth in 2025, with stablecoins used via smartphones and digital wallets for cross-border payments and remittances.
This matters because stablecoins offer a cheaper alternative to traditional channels—where sending $200 to sub-Saharan Africa averages 9% in fees (well above the global 6% average)—helping households and small firms bypass naira depreciation, inflation, and forex constraints after the CBN’s 2021 ban on banks servicing crypto exchanges pushed activity to peer-to-peer platforms.
However, the IMF warns that widespread stablecoin use risks resembling dollarisation, weakening naira monetary policy transmission, and complicating financial integrity monitoring due to transaction anonymity. The Fund recommends stabilizing the naira, strengthening oversight of virtual asset service providers, improving data on stablecoin-naira conversions, and upgrading payment infrastructure to reduce reliance on unregulated channels.
With traditional remittances costing 9% versus stablecoins' lower fees, will you consider digital wallets for sending money abroad, or stick with banks despite higher costs?