Remittances ‘more important than aid’ as Africa turns to stablecoins

Speaking at the World Economic Forum in Davos, Switzerland, economist Vera Songwe pointed to remittances and inflation hedging as key drivers of stablecoin use across Africa.

Stablecoins are increasingly being used across Africa as a cheaper and faster remittance option, with remittances becoming “more important than aid” on the continent, according to Vera Songwe, a former UN under-secretary-general.

Speaking at a World Economic Forum panel in Davos, Switzerland on Thursday, Songwe said traditional money transfer services in Africa often cost about $6 for every $100 sent, making cross-border payments expensive and slow.

She said stablecoins are cutting fees and settlement times, allowing individuals and small businesses to move money in minutes rather than waiting days for cross-border payments to clear.

Read more