Stablecoin Utility Report 2026: Nigeria and South Africa Drive Rising Stablecoin Demand

Nigeria and South Africa are leading growth in stablecoin demand among emerging markets, with users in both countries expressing strong optimism about their future role in payments, according to a new survey conducted by YouGov in partnership with BVNK, Coinbase, and Artemis.

The survey titled “Stablecoin Utility Report” took the views of more than 4,650 individuals across 15 countries who either hold or plan to hold stablecoins or cryptocurrencies. Developing economies showed the strongest growth trends, with nearly 80% of Nigerian and South African respondents already holding stablecoins. More than 75% of those holders said they intend to increase their positions in the coming year.

Payment Preference Surges in Nigeria

Among non-holders, intent to adopt stablecoins was roughly twice as high in low- and middle-income countries compared to high-income economies.

In Nigeria, 95% of respondents said they would prefer to receive payments in stablecoins rather than the local naira, underscoring demand for alternatives amid currency volatility and payment inefficiencies.

Chris Harmse, co-founder of BVNK, said stablecoins are increasingly being used where “traditional payments are slow, expensive, or unreliable,” adding that users are seeking deeper integration with existing financial tools.

Trading Dominates Current Usage

Despite growing enthusiasm for payments, stablecoin usage remains concentrated in crypto markets. Consulting firm Boston Consulting Group previously estimated that nearly 90% of stablecoin transactions are tied to crypto trading, while only 6% relate to payments for goods or services.

Limited merchant acceptance, both in physical retail and online, remains a key barrier to broader real-world usage.

Dollar Peg Raises Policy Concerns

Globally, the stablecoin market exceeds $310 billion, dominated by U.S. dollar–pegged tokens such as Tether (approximately $185 billion market cap) and Circle’s USDC (around $75 billion).

While regulatory clarity in the United States, including developments such as the proposed GENIUS Act, is expected to support further growth, policymakers in emerging markets remain cautious.

Central banks warn that widespread adoption of dollar-backed stablecoins could:

• Accelerate economic dollarization
• Drain domestic bank deposits
• Undermine monetary policy transmission
• Facilitate capital flight

South African Reserve Bank Governor Lesetja Kganyago acknowledged potential benefits, particularly in reducing high remittance costs. In some cases, sending $100 to neighboring Mozambique can cost as much as $30, a gap digital dollar tokens could help narrow.

Structural Shift Underway

The survey highlights a structural divergence: while advanced economies approach stablecoins cautiously, demand in emerging markets is accelerating, driven by payment inefficiencies and currency volatility.

However, for stablecoins to transition from trading instruments to mainstream payment tools, broader merchant acceptance and regulatory clarity will be critical.

As adoption expands in Africa’s largest economies, the tension between financial inclusion benefits and monetary sovereignty concerns is likely to shape policy debates in 2026 and beyond.