Stablecoins are no longer abstract digital assets in Africa, they are practical financial tools used every day for payments, remittances, savings, and cross-border trade. At the centre of this shift are two dollar-backed stablecoins: USDT (Tether) and USDC (USD Coin).
As explored in The State of Stablecoins in Africa 2025, stablecoins now account for a significant share of on-chain activity across the continent. But adoption is not evenly distributed across all tokens. Instead, USDC and USDT have emerged as Africa’s dominant digital dollars, shaping how value moves in and out of African economies.
This article examines why USDC and USDT are rising in Africa, how they are used in practice, and what their growth means for remittances, FX stability, and digital finance across the continent.
Stablecoins in Africa: Why the Dollar Still Matters
Africa’s stablecoin adoption is driven less by crypto speculation and more by economic necessity. Many African currencies face inflation, depreciation, FX shortages, and capital controls. Access to US dollars traditionally restricted, has become increasingly valuable for households and businesses alike.
Dollar-pegged stablecoins offer:
- A stable store of value
- A unit of account trusted across borders
- A means of settlement independent of local banking constraints
In this context, USDC and USDT function as digital representations of the dollar, accessible through a smartphone rather than a foreign bank account.
USDT and USDC: What’s the Difference?
Although both are US dollar-pegged stablecoins, USDT and USDC have different histories and adoption patterns.
USDT (Tether)
- Launched in 2014
- Widely available across blockchains
- Deep liquidity in emerging markets
- Often preferred for peer-to-peer transfers and remittances
USDC (USD Coin)
- Launched in 2018
- Known for strong compliance and transparency standards
- Increasingly used by institutions, fintechs, and regulated platforms
- Growing presence in African payment flows
In Africa, liquidity and accessibility often matter more than brand, which explains why both USDT and USDC coexist, serving different user needs across markets.
Why USDT and USDC Are Gaining Rapid Adoption in Africa
Protection Against Currency Volatility
For millions of Africans, holding value in local currency exposes savings to inflation and sudden devaluation. USDT and USDC provide a way to store value in dollars without leaving the country.
This is particularly important in economies where exchange rates shift rapidly or access to dollar accounts is limited.
Lower-Cost Cross-Border Remittances
As discussed in How Stablecoins Are Transforming Cross-Border Remittances in Africa, traditional remittance rails are expensive and slow.
USDT and USDC enable:
- Faster settlement
- Fewer intermediaries
- Reduced FX mark-ups
- Transparent pricing
Instead of converting currencies multiple times, value moves in dollars until final payout, preserving more value for recipients.
Strong Peer-to-Peer Liquidity
In markets like Nigeria, Kenya, and Ghana, peer-to-peer stablecoin markets are deep and active. This liquidity makes USDT and USDC practical for everyday use not just holding, but spending and converting.
High liquidity also reduces slippage and pricing inefficiencies when users cash out to bank accounts or mobile money.
Compatibility With Mobile-First Finance
Africa’s financial system is mobile-first. USDT and USDC integrate easily with:
- Stablecoin wallets
- Mobile money off-ramps
- Fintech apps
- On-chain payment rails
This makes them especially suited to African usage patterns, where smartphones are the primary financial interface.
Where USDT and USDC Are Most Used in Africa
Nigeria 🇳🇬
Nigeria remains Africa’s largest stablecoin market. High inflation, FX restrictions, and a large diaspora have made USDT and USDC essential tools for savings, remittances, and business payments.
Kenya 🇰🇪
In Kenya, USDT and USDC complement mobile money rather than replace it. Users increasingly move value on-chain, then cash out to mobile wallets when needed.
Ghana 🇬🇭
Currency depreciation has driven stablecoin adoption for short-term savings and international payments, particularly among freelancers and SMEs.
Francophone West Africa 🇫🇷
In the CFA zone, stablecoins help bridge limited currency convertibility and connect local economies to global markets.
USDT, USDC and Africa’s FX Problem
Foreign exchange remains one of the most significant hidden costs in African finance. Official rates often differ from parallel market rates, and forced conversions reduce real value.
USDT and USDC help by:
- Preserving value in USD until payout
- Avoiding unnecessary currency conversions
- Providing transparent, market-driven pricing
For families and businesses, this predictability matters more than marginal speed improvements, it protects purchasing power.
Stablecoin Wallets as the Distribution Layer
The rise of USDT and USDC in Africa would not be possible without stablecoin wallets. These wallets act as:
- the holding layer for digital dollars
- the transfer mechanism for remittances
- the bridge to local payout rails
For many users, a stablecoin wallet is their first exposure to dollar-based financial services, bypassing traditional barriers to entry.
From Digital Dollars to Real-World Use
Stablecoins only create value when users can reliably move between on-chain dollars and local financial systems. Without trusted on- and off-ramps, even the most liquid stablecoin becomes impractical.
EdenFi focuses on this critical infrastructure layer, ensuring that USDT and USDC can be converted seamlessly into bank accounts and mobile money wallets across Africa, with transparent pricing and minimal friction.
This connection transforms stablecoins from digital balances into usable financial tools.
What the Rise of USDT & USDC Means for Africa
The growth of USDT and USDC signals a deeper shift in African finance:
- from fragmented local rails to global digital liquidity
- from opaque FX pricing to transparent value transfer
- from slow settlement to near-instant payments
These stablecoins are not replacing banks or mobile money, they are strengthening Africa’s financial stack, especially for cross-border use cases.
Conclusion: USDT and USDC as Africa’s Digital Dollars
The rise of USDT and USDC in Africa reflects a practical response to real financial challenges. In 2025, dollar stablecoins are no longer niche crypto assets, they are core infrastructure for remittances, savings, and cross-border payments.
As adoption grows, the platforms that succeed will be those that connect stablecoins to everyday financial life, ensuring that digital dollars translate into real economic impact.
To understand the broader context behind this shift, read our flagship report:
👉🏿The State of Stablecoins in Africa 2025