Nigeria has emerged as the second-largest adopter of crypto worldwide, showcasing its position as a leader in digital finance. Chainalysis’ upcoming report highlights the country’s rapidly expanding crypto ecosystem, where everyday transactions, remittances, and business payments increasingly rely on digital assets, particularly stablecoins.
Sub-Saharan Africa, as a region, is experiencing modest yet significant growth in crypto adoption, driven by the need for alternative financial services and more accessible international markets. According to Chainalysis, the region received $125 billion in on-chain value between July 2023 and June 2024, marking a $7.5 billion increase compared to the previous year. Despite representing only 2.7% of the global transaction volume, Sub-Saharan Africa’s influence in the crypto economy is on the rise.
Nigeria, in particular, has seen high adoption rates in crypto for everyday transactions, with many turning to digital assets for bill payments, mobile credit top-ups, and cross-border transfers. Other African nations such as Ethiopia, Kenya, and South Africa have also secured spots in the top 30 on the Chainalysis Global Adoption Index. The region is emerging as a key player in the global crypto space, showcasing its growing influence.
Stablecoins play a significant role in Sub-Saharan Africa’s crypto economy, accounting for 43% of the region’s total crypto transactions. These dollar-pegged digital currencies are gaining traction in countries with volatile local currencies and limited access to US dollars. In Nigeria, businesses and individuals are increasingly relying on stablecoins like USDT and USDC to protect their assets from ongoing fiat currency devaluation and foreign exchange shortages.
Stablecoins are also revolutionizing cross-border payments across Africa, making remittances cheaper and faster compared to traditional fiat currency methods. In Nigeria alone, stablecoin transactions under $1 million nearly reached $3 billion in early 2024, highlighting their importance for small and medium-sized transfers. As Nigeria and other Sub-Saharan African nations continue to engage with crypto, stablecoins are expected to play a central role in stabilizing economies and enabling financial inclusion.
South Africa, with its rapidly growing institutional activity and integration with traditional finance (TradFi), is also poised to drive crypto adoption in the region. Rob Downes, head of digital assets at Absa Bank in South Africa, mentioned that Nigeria and South Africa are leading the way in demonstrating how crypto can drive financial inclusion. Overall, Sub-Saharan Africa’s growth in the crypto economy is positioning the region as a hub for innovation and financial inclusion on the global stage.
