Former UN under-secretary-general Vera Songwe said stablecoins are becoming essential across Africa as people seek cheaper, faster ways to send money.
Speaking at the World Economic Forum in Davos, she said remittances are more valuable to African economies than foreign aid.
Songwe explained that sending money through traditional services remains costly and often takes days to process. On average, transferring $100 can cost around $6 in fees.
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By contrast, stablecoins let users send and receive funds almost instantly, which helps families and small businesses avoid delays and extra costs.
She also highlighted that high inflation continues to weaken local currencies in many African countries. Since the COVID-19 pandemic, inflation has exceeded 20% in roughly 12 to 15 nations.
Songwe said this makes stablecoins a practical way to hold money in a form less affected by currency devaluation.
She said, “650 million people don’t have access to a bank account in Africa. With a smartphone, you have access to stablecoins, so you can save in a currency that is not exposed to fluctuations of inflation and making you poor”.
According to Songwe, countries such as Egypt, Nigeria, Ethiopia, and South Africa are leading in stablecoin adoption, driven by small- and medium-sized businesses.
She noted that in these markets, stablecoins act as a bridge to financial inclusion rather than just a speculative tool.
Changpeng Zhao, former head of Binance
$2.82B
, also spoke about asset tokenization with several national governments in the same forum. What did he say? Read the full story.
