Africa: Pioneering the Cryptocurrency Playbook
Disclosure: The opinions expressed here are entirely those of the author and do not represent the views of crypto.news’ editorial team.
Let’s begin with the reality: Africa boasts some of the most advanced crypto infrastructure globally. This development wasn’t by design, but rather a product of necessity driving innovation.
Summary
- Africa serves as a practical testing ground for crypto, where adoption is fueled by necessity rather than speculation.
- In major markets, stablecoins account for 40–50% of transaction volume, acting as vital resources against inflation, devaluation, and expensive remittances.
- Users seek high-quality infrastructure that meets global standards, not just “Africa-only” solutions.
- Building in Africa is challenging — however, successful companies gain a strategic advantage, creating robust systems adaptable to any market.
While worldwide markets discuss theoretical applications, African users are actively experiencing them. Consequently, the continent has subtly positioned itself as the testing ground for how crypto can address real issues.
When crypto transcends theory
For most of the globe, crypto remains a speculative investment or technical intrigue. In Africa, it’s a commonplace reality. Here, crypto is utilized due to the lack of reliable alternatives, meaning the needs and behaviors of African users differ significantly from those in other markets, where speculation fosters adoption.
Necessity-driven users are more inclined to become long-term customers since crypto meets their genuine financial needs, whether for remittances or preserving value in volatile economic situations. When your local currency might lose 30% of its value in just one month, stablecoins aren’t merely innovative—they are essential infrastructure. And when cross-border transfers incur fees of 20%, peer-to-peer transfers aren’t disruptive—they are essential for survival.
At VALR, we’ve observed stablecoins rising to about 40% of total crypto volumes. This isn’t due to heavy marketing, but because they address challenges that concern people deeply. Dollar-denominated stability in regions where monetary policies may change at any moment? That isn’t merely a feature; it’s a necessity.
Building for the real world, not for show
African users don’t seek crypto products tailored “for Africa.” They desire world-class innovations that are effective in the African context. This distinction is crucial. Users don’t want a “good enough” exchange with lenient standards. They expect infrastructure that competes globally while addressing local requirements. They demand excellence and can discern the difference. Unfortunately, “good enough” isn’t viable when real people depend on your platform for financial security.
The African crypto landscape continues to offer numerous opportunities for those willing to uphold global quality standards, embrace regulations, and, most importantly, build with integrity. Operating in Africa presents challenges—payment ecosystems are frequently evolving, regulatory frameworks shift, and economic conditions fluctuate.
However, we’ve discovered that this complexity can be advantageous. When you learn to develop resilient systems that function across diverse, challenging environments, penetrating new markets becomes simpler rather than tougher.
It’s akin to training in high altitude: everything else seems manageable in comparison.
The reality of partnerships
Global crypto enterprises often enter African markets with good intentions but limited insight. They recognize the user demographics, appreciate the growth potential, and wish to engage. The hurdle lies not in interest, but execution.
To build here requires dedication, financial investment, and deep regional understanding. It necessitates recognizing that what succeeds in Singapore may falter in Lagos. It involves constructing payment systems from the ground up and navigating regulatory landscapes that can evolve at breakneck speeds.
From an African viewpoint, the most fruitful partnerships emerge from organizations that understand they are not merely exporting their existing strategies, but collaborating to create something novel.
The reality of stablecoins
Here’s the truth: most businesses on the continent prefer the US dollar over their local alternatives. Given the volatility of many African currencies, this preference is not unfounded.
Tether (USDT) and USD Coin (USDC) enable instantaneous, borderless transactions without the intricacies of new payment networks. Continuous inflation and challenges accessing foreign currency have made stablecoins an appealing option. Dollar-linked stablecoins are addressing a crucial gap in our financial systems.
A glance at the latest Chainalysis report indicates that Sub-Saharan Africa saw a significant increase in crypto activity in March this year. Monthly on-chain volume exceeded $25 billion, while most other regions faced downturns. The primary driver of this upsurge? A sudden currency devaluation in Nigeria in March 2025 pushed numerous users toward crypto as a hedge against volatility.
In Nigeria, stablecoins represent nearly 50% of crypto transaction volume. Similar trends are emerging in South Africa, Kenya, and Ghana. By 2025, we anticipate that key markets will surpass the 60% mark.
Service over speculation
Africa isn’t the future of crypto merely because someone declared it so at a conference. It’s currently the epicenter of crypto, driven by genuine demand, which in turn fuels real innovation.
The continent isn’t waiting for permission or validation. The infrastructure is being developed, adoption is taking place, and solutions are proving effective because people in Africa expect a dependable financial system that functions when they need it the most.
The revolution isn’t impending. It has already begun. In Africa, crypto is not just an alternative investment; it’s a vital economic tool for millions.
