Dickson Nsofor, CEO of pan-African payment infrastructure platform Kora, once experienced firsthand the frustrations of handling cross-border invoices from Nigeria. While running a hardware business, he routinely waited 10 to 14 business days for funds to reach manufacturers in China. Every transfer had to navigate a chain of correspondent banks, where a single data entry mistake could delay settlement even further. Nsofor’s ordeal highlights three persistent bottlenecks for businesses across the continent: sluggish legacy systems, steep intermediary fees, and limited access to US dollars.
Nsofor revealed an emerging trend where an increasing number of businesses have turned to stablecoins over the past five years to break free from these constraints. Standard transfers between African nations typically require funds to pass through foreign banks, incurring double conversion fees when exchanging two local currencies. The dollar-denominated settlement layer provided by stablecoins bypasses these convoluted steps. This direct model enables service providers to unify liquidity management across multiple regions without being hindered by banking borders.
Cross-Continental Capital Flows
Chainalysis’ September 2025 report illustrates the sheer scale of transactions driven by this shift. Countries like Nigeria absorbed over $92.1 billion in crypto transaction volume between July 2024 and June 2025. These inflows reflect a steady stream of daily multi-million dollar stablecoin transfers that power trade, finance energy projects, and facilitate merchant settlements across Africa, the Middle East, and Asia.
Even so, using crypto for cross-border remittances is not completely frictionless across every corridor. A July 31 study by Banca d’Italia testing transfers of 200 USDC across ten country corridors revealed total settlement costs ranging from 0.30% to nearly 9%. When testing the route to South Africa, researchers found that settlement still took one to two business days due to sluggish local banking networks.
An Unfinished Infrastructure Test
The primary challenge has now shifted toward technical hurdles, specifically the lack of interoperability between payment systems, including mobile money wallets, local payment rails, and traditional banks. On the regulatory and compliance front, the obligations placed on service providers continue to mount. Local regulators require operators to hold full operating licenses in each market, implement stringent customer identification (KYC/AML) protocols, monitor transaction activity, and ensure fiat off-ramping strictly complies with local regulations.
“Africa doesn’t need stablecoins to replace mobile money, banks, or local payment rails - it needs infrastructure that connects them all,” Nsofor said, pinpointing the core issue.
Elsewhere, the fate of comprehensive crypto regulatory frameworks remains far from certain. An effort to pass the CLARITY Act stalled in the US Senate after garnering only 49 votes in favor to 50 against, falling short of the 60-vote threshold needed for approval. Nevertheless, Nsofor believes adoption growth in Africa does not hinge on US regulatory developments. The trajectory of stablecoin adoption is driven entirely by whether the product solves tangible problems for grassroots businesses. Business owners will readily embrace the first logical solution once they realize supplier invoices can be settled instantly rather than being stuck in banking queues for 14 days.
Reported via crypto.news.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
