Interview: Could Stablecoins Become Africa’s New Payments Rail?

In this interview with Impact Newswire, Maksym Sakharov, Co-Founder and Group CEO of WeFi discusses the growing role of stablecoins in Africa’s financial system and whether they could become a mainstream payments rail across the continent. The conversation examines what is driving stablecoin adoption, the potential to reduce the cost and friction of cross-border payments, the growing involvement of banks and traditional payment networks, and the regulatory challenges facing African governments and central banks.

Africa is becoming an increasingly important market for cryptocurrency and digital-asset adoption, with stablecoins emerging as one of the most practical applications of blockchain technology. Rather than being used primarily for speculation, stablecoins are increasingly being explored for cross-border payments, remittances, treasury management, access to dollar-denominated value and trade.

Sub-Saharan Africa received more than $205 billion in on-chain value between July 2024 and June 2025, representing an increase of roughly 52% from the previous year and making it the world’s third-fastest-growing crypto region, according to Chainalysis. The firm says the region’s crypto activity increasingly reflects everyday financial needs, including payments and access to alternative stores of value.

Stablecoins are at the centre of that shift. Visa estimates that the global stablecoin market had more than $220 billion in circulation and $6.5 trillion in annual transaction volume in 2025. Visa has also partnered with Yellow Card, a pan-African fintech, to explore stablecoin applications for treasury operations and liquidity management across African markets.

The growing interest comes as companies and financial institutions look for alternatives to traditional cross-border payment infrastructure. The World Bank’s Remittance Prices Worldwide database puts the global average cost of sending remittances at 6.36%, underscoring the cost that migrants and businesses can face when moving money across borders.

Stablecoins could reduce some of the friction associated with cross-border settlement by allowing value to move on blockchain networks without relying entirely on traditional correspondent banking infrastructure. But the cost savings are not automatic: foreign-exchange spreads, liquidity, compliance, custody, local payment infrastructure and conversion into local currencies can still determine the final cost to users.

The payments industry is increasingly treating stablecoins as part of mainstream financial infrastructure rather than solely as a crypto product. Visa has expanded stablecoin settlement capabilities in its Central and Eastern Europe, Middle East and Africa region, including a partnership with Yellow Card, while its latest research shows that fiat-backed stablecoin supply reached more than $219 billion by April 2025, after growing about 40% over the preceding year.

Regulation is evolving alongside the market. African governments are taking different approaches to digital assets, ranging from licensing regimes and regulatory sandboxes to more restrictive policies. South Africa, Nigeria, Botswana, Mauritius and Namibia have moved toward formal regulatory frameworks, while other markets are developing or considering new rules. Visa’s research highlights the growing regulatory focus on consumer protection, financial stability and accountability as stablecoin adoption expands.

The growth of dollar-backed stablecoins also raises broader questions for African central banks. In countries facing currency depreciation or limited access to foreign currency, stablecoins can provide consumers and businesses with a digital route to dollar-denominated value. At the same time, widespread use could contribute to currency substitution and complicate monetary policy, foreign-exchange management and oversight of capital flows.

Against this backdrop, Maksym Sakharov, Co-Founder and Group CEO of WeF, spoke with Faustine Ngila on whether stablecoins can become a mainstream payments rail, how banks and traditional payment networks are responding, which African use cases are likely to scale first, and what regulatory and infrastructure changes are required for broader adoption.

Here is the full interview, edited for clarity:

1. Africa has become one of the world’s fastest-growing stablecoin markets. What factors are driving this growth?

Africa’s stablecoin growth is being driven by practical financial pressure, not speculation alone. In some corridors, businesses are leading demand because they need faster supplier payments, clearer settlement, and more flexible access to dollar-denominated value. In other markets, consumer demand is stronger because people are trying to receive remittances, protect purchasing power, or move value when local currency conditions are difficult.

I would not describe adoption as one single African story. It changes by country, corridor, and use case. Businesses often create larger payment flows, while consumers show why the demand exists in the first place: they need financial tools that feel more reliable than the options available to them.

The important point is that stablecoins are being pulled into real payment behavior. There is strong Sub-Saharan African crypto adoption growth and noted stablecoin use in trade flows between Africa, the Center East, and Asia.

2. Governments across Africa are taking different approaches to crypto regulation, from restrictive policies to licensing frameworks. Which regulatory models do you think are most likely to encourage innovation while protecting consumers?

The best regulatory models are licensing-based, activity-based, and clear about responsibility. A ban may reduce visible activity, but it does not remove demand. It can push users into less transparent channels, where consumer protection becomes harder. Open-ended permissiveness creates the opposite problem: serious companies, banks, and payment partners may not have enough confidence to build.

The stronger approach is to regulate the activity. Custody, exchange, transfer, payment access, stablecoin services, and other user-facing functions should have clear requirements. That includes AML controls, disclosures, custody standards, fraud monitoring, operational resilience, and accountability when something goes wrong.

South Africa’s licensing approach for crypto asset service providers and Nigeria’s digital asset rules show how major markets are moving toward more structured supervision rather than treating the sector as outside the regulatory perimeter. Regulation should make responsible participation easier, not simply make activity harder to see.

3. Traditional banks have historically been cautious about crypto. Are you seeing a shift toward banks integrating stablecoin payment rails, and what are the biggest barriers to wider adoption?

Yes, there is a shift, but banks will move carefully. Stablecoins are becoming more interesting to banks because the use case has moved beyond trading. The more serious discussion is now around payments, treasury movement, merchant settlement, and cross-border value transfer. Large payment companies are also moving in this direction. Visa has expanded stablecoin settlement support, and Mastercard has announced stablecoin capabilities across wallets, card acceptance, and merchant settlement.

For banks, the barriers are not only technical. They need regulatory clarity, reliable liquidity, custody frameworks, risk controls, compliance processes, core banking integration, and dependable off-ramps. They also need to understand where stablecoin rails improve the payment experience without creating unmanaged legal or operational risk.

In Africa, banks can play an important role because they provide trust, fiat connectivity, and local compliance infrastructure. The shift will happen where the payment problem is clear enough to justify integration.

4. Cross-border payments in Africa remain among the world’s most expensive, according to the World Bank. How much can stablecoins realistically reduce transaction costs, and what infrastructure gaps still need to be addressed?

Stablecoins can reduce some costs, but the realistic measure is the full end-to-end payment cost, not the blockchain transaction fee alone.

The World Bank tracks remittance costs through its Remittance Prices Worldwide database, which is why cross-border payment cost remains a major issue for African corridors. Stablecoins can help by reducing settlement delays, making value movement more direct, and lowering dependency on long correspondent chains in high-friction corridors.

But costs can reappear elsewhere. FX spreads, off-ramp fees, local liquidity, compliance checks, custody, fraud controls, and cash-out options all affect what the user actually pays.

The infrastructure gaps are still significant: trusted on- and off-ramps, deeper local liquidity, reliable fiat access, merchant acceptance, customer support, and compliance-aware workflows. Stablecoins can improve the rail, but the surrounding payment environment decides whether users see real savings.

5. Several global financial institutions, including Visa, Mastercard and major banks, are expanding their stablecoin initiatives. How do you see competition evolving between traditional payment networks and crypto-native infrastructure providers in Africa?

Traditional payment networks bring acceptance, bank relationships, compliance experience, fraud controls, dispute processes, and operating standards. Crypto-native infrastructure providers bring faster settlement logic, digital asset expertise, programmable value movement, and new ways to route liquidity across markets.

That division matters in Africa because the payment problem is rarely solved by one layer. A stablecoin transfer may move quickly, but the user still needs local access, conversion, merchant acceptance, support, and trust. Payment networks understand distribution and acceptance. Crypto-native providers understand the new settlement layer.

Visa and Mastercard’s stablecoin initiatives show that large networks are not ignoring this shift. The likely outcome is more partnership, more infrastructure specialization, and more competition around who can make stablecoin payments usable in real business and consumer workflows.

6. Dollar-backed stablecoins are becoming increasingly popular in countries facing currency depreciation. Could their rapid adoption undermine local currencies or complicate monetary policy for African central banks?

Yes, rapid adoption can complicate monetary policy, even when the user demand is understandable.

Where people face currency depreciation, inflation, or limited access to international value, dollar-backed stablecoins can feel practical. They may help individuals preserve purchasing power, receive remittances, or settle cross-border payments. For businesses, they can provide a more predictable way to manage supplier payments and dollar exposure.

For central banks, the concern is different. If stablecoins become widely used for savings, payments, and business settlement, they can increase currency substitution and reduce the effectiveness of local monetary policy. They can also affect capital flow monitoring, foreign exchange management, and visibility into payment activity.

That does not mean regulators should ignore the demand or rely only on restrictions. Stablecoin use often reflects a real weakness in existing payment or currency access. The better answer is safer channels, licensing, monitoring, liquidity oversight, and clearer responsibility for providers.

7. Tokenized real-world assets and on-chain banking are attracting growing investment globally. Which sectors in Africa are most likely to see commercial adoption first?

The first commercial adoption will likely come from sectors where payment and settlement problems are already visible.

Remittances are one obvious area because users care about speed, cost, reliability, and cash-out access. SME trade is another strong candidate. Many African businesses need to pay overseas suppliers, receive funds from international buyers, or manage cross-border settlement in markets where banking access and FX availability can be difficult.

Merchant settlement and freelancer income are also likely early use cases. Digital workers, online merchants, and small businesses often need international payment access that matches how they earn and operate.

Treasury management may grow among more sophisticated businesses managing dollar exposure, multi-market operations, or supplier payments. Tokenized real-world assets may take longer because they require stronger legal frameworks, custody standards, disclosures, valuation methods, and institutional trust.

From WeFi’s perspective, on-chain banking adoption will begin where the use case is operational: moving, holding, reconciling, and using value more efficiently.

8. Looking ahead over the next three to five years, what do you expect will be the biggest catalyst for mainstream stablecoin adoption in Africa?

The biggest catalyst will be the moment stablecoins become invisible to the user. Regulatory clarity, bank participation, and better infrastructure all matter, but mainstream adoption will not come from any one of them alone. It will come when a user can receive, move, convert, and spend digital value without thinking about chains, wallets, liquidity routes, or settlement mechanics.

That is the next phase for Africa. The early market understands why stablecoins are useful. The mainstream market will need products that make them practical: clear pricing, reliable local access, trusted cash-out options, merchant connectivity, support, and compliance controls that do not make the experience difficult.

From WeFi’s perspective, stablecoins scale when the rail disappears into the workflow. People and businesses should feel the benefit through faster settlement, clearer access, and more predictable value movement, not through technical exposure. The catalyst is not only regulation or banking participation. It is usability built on trusted infrastructure.

Yaa Gyasi

Biggest Selling Title: Homegoing
Short Bio: A Ghanaian-American novelist, Gyasi’s debut novel Homegoing traces the lineage of two half-sisters and their descendants, exploring the impact of slavery on generations.

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