Stablecoins Displace Bitcoin Speculation in African Crypto Markets
Stablecoins have become a dominant force in crypto activity across Africa and South Africa, displacing speculation-driven interest in Bitcoin. According to Absa's digital assets head Rob Downes, stablecoin flows across Absa's African markets have more than doubled over the past four years, exceeding $500 billion.
Downes noted that most of this growth is driven by the increasing adoption of stablecoins as a cheap and rapid means of value transfer. Unlike Bitcoin, whose primary purpose is price appreciation, stablecoins are designed to track an underlying currency, such as the rand or US dollar.
Absa has developed its own bank-backed stablecoin, although it's not yet being actively traded due to proposed exchange control rules from the South African Reserve Bank. The bank is already participating in the stablecoin market by holding rand reserves backing ZARsc, a stablecoin issued by Supercoin, a subsidiary of New York-listed Super Group.
Blockchain analytics firm Sixpence's analysis confirms the shift away from Bitcoin towards stablecoins. According to CEO Carel de Jager, Bitcoin-related activity among South Africans has fallen significantly since 2019 and 2020, while total crypto transaction volumes have remained steady, with stablecoins filling the gap.