How Stablecoins Are Reshaping the Remittance Landscape in Africa

2026-01-30 20:11:27

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At the World Economic Forum, Vera Songwe, an executive at the African Development Bank, proposed a thought-provoking perspective: compared to traditional aid, stablecoins may have a more direct and profound impact on Africa’s economic development. Behind this view reflects the reality that remittances are an important source of funds for Africa.

Traditional international remittance methods are costly and inefficient—handling fees usually reach 5-10%, and transfer cycles can take several days. Stablecoins, utilizing blockchain technology, can achieve instant, low-cost cross-border transfers, with fees reduced to below 1%. For African families relying on remittances, this means tangible increases in income.

The application of stablecoins in remittances essentially embodies the empowerment of financial technology for financial inclusion. In regions of Africa with limited banking services, stablecoins open the door to international remittances through mobile wallets and other methods for people without bank accounts. As the digital economy develops, this new type of remittance tool is gradually changing Africa’s economic activity landscape and promoting the digital transformation of regional economies.

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