Nigeria has emerged as a leader in the adoption of stablecoins and ranks second globally in overall digital asset usage, according to the recently published ‘2025 Report on the State of Digital Assets Regulation in Africa’ by Yellow Card, a licensed stablecoin payments platform. This milestone underscores Nigeria’s prominent role in Africa’s rapidly evolving digital financial landscape.
The report highlights that 25.9 million Nigerians, accounting for roughly 11.9% of the population, are actively engaged with digital assets, with a strong preference for USD-denominated stablecoins. Stablecoins have become a crucial financial tool for Africans seeking more efficient, accessible, and stable solutions amid economic volatility.
“Stablecoins have transformed into an essential resource for Africans, especially in Nigeria, where currency volatility and inflation significantly impact everyday financial activities,” the report states. “Nigeria’s leadership in stablecoin adoption signals how fintech innovation can respond effectively to local economic needs, catalyzing broader financial inclusion.”
In Nigeria, stablecoins are predominantly used for cross-border payments, currency hedging, and accessing dollar-backed assets, vital functions in a country grappling with persistent naira devaluation and inflation. The adoption of these digital assets offers a lifeline to individuals and businesses navigating a challenging financial environment.
Nigeria’s remarkable digital asset activity is now mirrored across several other African nations, with nine countries making it into the top 50 globally. These include Ethiopia (26th), Morocco (27th), Kenya (28th), South Africa (30th), Uganda (34th), Algeria (43rd), Egypt (44th), Ghana (46th), and the Democratic Republic of the Congo (48th). Collectively, over 54 million Africans are now engaged with digital assets, reflecting a significant shift in how money is managed, transferred, and saved across the continent.
Sub-Saharan Africa leads the world in stablecoin adoption, with a rate of 9.3%, driven largely by Nigeria’s leadership. Despite regulatory hurdles, including bans and restrictions in countries like Algeria, Egypt, Morocco, and Tunisia, adoption continues to grow aggressively. Morocco and Egypt alone are estimated to have over 17 million digital asset users combined, with Morocco planning to introduce a comprehensive regulatory framework by the end of 2025.
Governments across Africa are responding with a mix of regulatory sandboxes, draft legislation, and laws governing Virtual Asset Service Providers (VASPs). Many countries, including Nigeria, are also exploring Central Bank Digital Currencies (CBDCs) as part of broader efforts to foster financial inclusion, enhance monetary stability, and bolster economic resilience.
“Digital assets are becoming a permanent fixture in Africa’s financial ecosystem,” the report concludes. “Driven by grassroots demand, business adoption, and increasing government interest, the trend is set to accelerate, positioning Africa as a global hub for digital asset innovation.”
As the continent embraces this digital revolution, the push for clearer regulation and supportive policy environments will be crucial in harnessing the full potential of Africa’s burgeoning digital asset ecosystem.
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