Stablecoins could transform cross-border payments in Africa as stakeholders argue that regulators must strike a balance between innovation and compliance.
At the fourth edition of the Kenya Blockchain and Crypto Conference held in Nairobi backers of stablecoin engaged in practical use of stablecoins in reducing the cost and delays associated with cross-border transactions.
“One of the issues we’ve been grappling with, especially as far as cross-border payments are concerned, is how expensive, unreliable and slow it is to move money. Sometimes it can take up to two weeks. That is what we hope stablecoins can solve,” said Sheila Waswa, Chasing Mavericks Chiefe Executive Officer.
Industry executives attending the conference argued that blockchain-based payment systems are already proving effective for businesses operating across multiple markets.
Luno Country Manager for Kenya Apollo Sande said stablecoins are increasingly being used for remittances, treasury management and international settlements, though adoption remains at an early stage.
“As far as cross-border payments are concerned, we’ve always depended on systems with multiple hops that take fees along the way and settle after two to three days. Stablecoins can address that, but there’s still a significant knowledge gap and provider competence gap,” he added.
He noted that many businesses, especially manufacturers and importers, are still unfamiliar with how blockchain-based payment rails can be integrated compliantly into their operations.
Similarly, Kevin Kegima of YogoPay described stablecoins as “the next level” in helping SMEs and large enterprises improve payment efficiency across Africa, Asia, Europe and the United States.
YogoPay, a cross-border payments platform, uses both fiat currencies and stablecoins to facilitate business transactions across multiple corridors, including China, Nigeria, Ghana, Kenya, Tanzania and Uganda.
The conference also highlighted Kenya’s ambition to become a continental hub for blockchain innovation.
The Nairobi International Financial Centre Authority CEO Daniel Mainda noted that the government is finalizing regulations for virtual asset service providers in collaboration with the Central Bank of Kenya and the Capital Markets Authority.
“We want Nairobi to become the home of technology and startups in the continent,” said Mainda.
“The regulations must create a level playing field while ensuring we attract the best players into the market.”
Stakeholders at the conference expressed optimism that clear regulation, combined with industry collaboration, could accelerate mainstream adoption of blockchain-based payments across Africa.
The conference brought together regulators, banks, fintech firms, blockchain startups and payment providers to discuss how digital assets can solve inefficiencies in remittances and international trade.
