Africa Embracing Stablecoins as Currency Volatility Ebbs
Kora's CEO Dickson Nsofor says dollar-backed stablecoins are becoming essential financial infrastructure for cross-border trade in Africa.
Africa is plagued by currency volatility, inflation, and foreign exchange shortages, which have hindered businesses across the continent. As a result, companies are adopting stablecoins such as USDT and USDC to preserve value, settle international transactions faster, and reduce reliance on traditional correspondent banking systems.
Nsofor notes that multinational corporations and African businesses are turning to stablecoins due to delays in accessing foreign exchange disrupting cross-border commerce. 'If a global enterprise wants to settle trade or externalise funds, relying on traditional correspondent banking networks can mean waiting weeks for USD allocations,' he said.
Kora's CEO believes that stablecoins offer a more efficient alternative to traditional banking infrastructure in Africa, which is highly fragmented. Settling transactions directly on the blockchain means transactional costs can be slashed by a massive margin while reducing settlement times to seconds.