In recent times, stablecoins like USDT and USDC have emerged as essential tools for individuals in cities such as Nairobi and Lagos to combat the challenges of inflation. These digital currencies not only facilitate smoother transactions but also reduce expensive remittance fees through popular mobile wallets such as M-Pesa.

Key Takeaways:

• Stablecoins are increasingly used for daily transactions and savings in Nairobi and Lagos.
• High inflation rates and expensive foreign exchange transactions are major factors driving their adoption.
• The integration of stablecoins with mobile wallets enhances their usability for many.
• However, users must remain cautious of risks related to reserves, scams, and evolving regulatory frameworks.

On a typical Tuesday in Nairobi, Amina sends an invoice to a client based in Berlin. By midday, the USDC payment has successfully reached her digital wallet, and she promptly transfers the funds to her M-Pesa account. What once seemed experimental has now become routine owing to services like Kotani Pay that link stablecoins to mobile money.

In Lagos, Chinedu operates a small shop and maintains his business’s capital in Tether (USDt). This strategy allows him to procure goods without succumbing to the volatile fluctuations of the naira.

Between July 2023 and June 2024, Nigeria processed nearly $22 billion in stablecoin transactions, reflecting the highest volume within Sub-Saharan Africa. Stablecoins alleviate some of the financial burdens posed by traditional remittance service fees, which averaged 8.45% in Q3 2024, compared to lower rates offered by digital-first operators.

For millions facing inflation and stringent currency regulations, stablecoins are proving to be an invaluable resource, enabling quick transfers and efficient payment solutions with nothing more than a mobile device.

The Economic Landscape

The cost of living crisis in Nigeria continues to pose significant challenges. Although inflation dropped from the peak levels of early 2025, it still stands at a concerning 21.88% as of July 2025, exerting pressure on consumers’ purchasing power.

In Kenya, the inflation situation remains comparatively benign but follows a similar trend. As of August 2025, inflation rose to 4.5%, largely driven by increased food and transportation costs.

Furthermore, Sub-Saharan Africa remains home to some of the most expensive remittance corridors, with the World Bank suggesting that sending money to the region is still costly.

Navigating Regulatory Challenges

The regulatory environment surrounding cryptocurrencies, particularly in Nigeria and Kenya, has undergone rapid changes, impacting how these digital assets are integrated into broader financial ecosystems.

Despite the hurdles, the practical advantages of stablecoins—such as enhanced transfer speeds and lower fees—continue to attract users, bolstering their presence across Africa as essential financial solutions for ordinary citizens.