In Sub-Saharan Africa, FinTech is shaped by youthful demographics and mobile-first populations in search of solutions to bring down costs and accelerate growth. According to the World Bank, Sub-Saharan Africa received $54 billion in remittances in 2023, yet sending money to the region remains the costliest globally, averaging 7.9 percent in fees for a $200 transfer. These systemic frictions have made digital assets an attractive workaround. Stablecoins are gaining traction as instruments for cross-border payments, savings, and commerce in economies affected by inflation and currency volatility. According to Chainalysis, stablecoins now account for roughly 43 percent of all crypto transaction volume in Sub-Saharan Africa, reflecting their growing market share and ability to cut remittance costs, as research by the Digital Dollar Project suggests. 

Governments are simultaneously exploring their own digital currencies and payment infrastructure upgrades as part of a broader modernization trend. Central banks in several African countries have considered or piloted central bank digital currencies (CBDCs) to enhance financial inclusion and monetary sovereignty. Uptake, however, has lagged far behind private stablecoins. In Nigeria, one of the few countries to launch a retail CBDC, International Monetary Fund data indicated that 98 percent of eNaira wallets were inactive by 2023. Many users prefer USD-backed tokens over nascent official alternatives. 

Beyond currencies, the region's digital financial infrastructure is rapidly evolving. Governments are investing in broadband and mobile connectivity for FinTech. Pan-African initiatives like the African Continental Free Trade Area and its Pan-African Payment and Settlement System aim to harmonize cross-border payments, reducing reliance on foreign intermediaries. These efforts could eventually dovetail with crypto-based solutions such as stablecoins and local digital currencies to facilitate intra-African trade for small businesses traditionally priced out of formal foreign exchange channels. 

Yet barriers remain to full consumer participation in this new interconnected African digital economy. Over 100 million people in Sub-Saharan Africa lack official identification documents, a barrier to using regulated digital finance platforms. Infrastructure and financial education challenges persist, especially in rural areas with limited broadband. Regulation is also fragmented: Some countries have clear rules for crypto, while others oscillate between caution and permissiveness, creating uncertainty for entrepreneurs and consumers. 
 

Nigeria: Africa's Hub for Crypto Adoption

Nigeria has emerged as a global crypto hub, consistently ranking among the top three countries for adoption. With over 220 million and a median age under 20, Nigeria has a large base of young, tech-savvy users seeking economic alternatives as the country faces persistent currency depreciation and inflation. These pressures make cryptocurrencies—especially stablecoins—a vital hedge. Chainalysis estimates about $59 billion in cryptocurrency transaction volume passed through Nigeria in 2024. 

Stablecoins make up an estimated 40 percent of Nigeria's crypto market, led by dollar-pegged tokens like USDT and USDC. Stablecoin use is also driven by crypto remittances, offering a faster, cheaper alternative to traditional money transfers. Nigeria was Africa’s largest remittance recipient in 2023, with about $19.5 billion received, according to the World Bank. 

Policy is evolving. After restricting banks from crypto dealings, Nigerian authorities are shifting toward constructive regulation. Regulators are drafting rules to register and supervise exchanges and ensure consumer protection. 

One area of tension is the dynamic between CBDC and dollar stablecoin. The Central Bank launched the eNaira in 2021, but adoption remains minimal, while unofficial dollar-backed stablecoins flourish. Policymakers are re-examining their strategy, exploring ways to regulate or integrate stablecoins rather than competing with them. The goal is to enable low-cost digital transactions and leverage crypto momentum to diversify the economy. Currency adoption depends on trust, and Nigerian consumers favor digital dollars over the eNaira. 
 

Kenya: From M-Pesa to Stablecoin

Kenya is a mobile money pioneer and that legacy has supported the country's growing crypto ecosystem. With a population of 55 million and more mobile phone subscriptions per capita than the United States, Kenya has long led the region in digital finance adoption. As of 2021, 79 percent of Kenyan adults had some form of financial account, largely due to mobile money like Safaricom's pioneering M-Pesa, which uses SMS and mobile phones to provide accessible digital payments. The platform revolutionized the country's banking and telecoms sector. M-Pesa now moves hundreds of billions of dollars annually and boasts 34 million users. 

Kenya is continuing to scale its broadband and digital currency infrastructure. The Central Bank of Kenya has studied a digital shilling, concluding that any CBDC must clearly differ from existing mobile money systems. For now, the country is focusing on enabling private-sector innovation in payments. 

To support this, Kenya introduced its first proposed crypto legislation: the 2025 Virtual Asset Service Providers Bill, which outlines a dual oversight system. The Central Bank would regulate stablecoin issuers, wallet providers, and payment processors, while the Capital Markets Authority would license exchanges, tokenization platforms, and investment advisors. The bill aims to create legal certainty necessary for future development.

Stablecoins show promise in cross-border payments, online work, and trade finance. A Mercy Corps Ventures pilot tested $5 micropayments from abroad for Kenyan freelancers, and using stablecoins reduced fees from 29 percent to 2 percent. Users saved more and accessed earnings faster—even without a bank account.

A new generation of innovators is building on M-Pesa’s legacy to expand the digital economy. Crypto adoption here does not require a leap of faith, for an economy that already knows how to ride an adoption cycle in digital payments. As regulation comes online, innovators are leveraging trust in a cashless economy, digital infrastructure, and real-world applications for remittances, online earnings, and trade. Kenya is evolving from a mobile money pioneer to a crypto-compatible finance hub. 

Across Sub-Saharan Africa, crypto is converging with digital infrastructure modernization. Kenya, Nigeria, and others have regulatory foundations and young populations ready to participate in a new financial system. 

For the investors, financial professionals, and policymakers watching from the sidelines, this regional evolution offers lessons and opportunities. Africa has moved from cash-based economies to delivering services through mobile, cloud, and blockchain. The region's focus on stablecoins and mobile-first infrastructure is a growing opportunity for global partnerships and economic integration. As digital finance ecosystems mature, they offer blueprints that could shape inclusive and impactful global standards. 

This insight is part of a series on global crypto adoption researched in partnership with the Milken Institute FinTech Program and the New York University School of Professional Studies Center for Global Affairs.