Africa’s leap into mobile money was a surprise — and a missed opportunity for many legacy banks. As Safaricom’s M-Pesa surged, traditional banks watched, many believing it a fad. But mobile payments redefined daily transactions across tens of millions.

Now, a new frontier looms: stablecoins. If African institutions sit on the sidelines again, they risk surrendering not just payments infrastructure but monetary policy itself.

Local-currency stablecoins are not a speculative detour. They are the rails through which Africa can reclaim control over capital flows, remittances, and programmable finance — if executed with care.

In Africa, the dominance of dollar-backed stablecoins is already entrenched. More than 99% of global stablecoin issuance is pegged to the U.S. dollar.

Across sub-Saharan Africa, stablecoin transactions account for roughly 43% of total crypto volume — proof that digital dollars are becoming a default reserve for the internet age.

That matters because when exporters, freelancers, or merchants are paid in digital tokens, they’re often paid in U.S. dollars, not shillings, naira, or rands. The result: monetary dependence deepens, while the profits from issuing and managing those tokens flow offshore.

Launched in 2025, cNGN became Africa’s first regulated local-currency stablecoin, pegged to the naira. Its early volumes remain modest, but its existence shows the model can work alongside — not in competition with — CBDCs like the eNaira.

The African Stablecoin Consortium is pushing for regional standards. Meanwhile, fintechs such as Paychant and global players like Visa, through its partnership with Yellow Card, are already testing stablecoin payment rails across borders.

What started with remittances is spreading. Stablecoins are now used for savings, payroll, and merchant settlement across key markets. The challenge: dollar-pegged tokens remain the most liquid and trusted, creating a steep hill for local units to climb.

If African regulators and banks delay, they’ll inherit frameworks designed elsewhere and watch as dollar-backed issuers dominate. If they act, they can reclaim sovereignty, slash remittance costs, and lay the rails for programmable finance rooted in African currencies.

Local-currency stablecoins in Africa aren’t just another payment method. They are a chance to shape the continent’s digital economy from the ground up.

The window is open, but it won’t stay open forever.