Author: WSPN

1. Introduction

1.1 Africa’s Digital Economy

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With the rapid development of the global digital economy, Africa is at the crossroads of using the digital economy to promote economic transformation and sustainable development. Africa has a total area of ​​more than 30 million square kilometers, a population of more than 1.4 billion as of 2022, and rich natural resources. According to World Bank statistics, the GDP of the African continent will be approximately US$2.98 trillion in 2022, and will maintain an annual growth rate of more than 3%. According to Endeavor's report, the scale of the digital economy in Africa as a whole will be approximately US$115 billion in 2022, accounting for a proportion of GDP. is 3.86%, and is expected to reach US$712 billion in 2050. In comparison, Asia’s digital economy will account for more than 30% of GDP in 2022. Africa's digital economic development has huge potential.

The digital economy covers multiple industries such as digital finance, digital commerce, and digital education. Digital finance integrates the traditional financial industry with digital technology. As many as 66% of the population in Africa do not have bank accounts. All people and companies in Africa are facing challenges such as difficulty in making payments, loans, savings, and purchasing insurance. The number of related financial technology companies in Africa has surged in recent years. According to statistics, African Fintech companies raised a total of nearly US$200 million in 2017, and the top 10 African Fintech companies raised a total of nearly US$300 million in 2018. In 2019, the total number of single investments with a financing amount of more than US$5 million has exceeded US$580 million. The most popular industries in Africa's digital finance are mobile payments (digital wallets), online lending, online remittances, etc. Inclusive finance is one of the biggest opportunities for Africa's digital industry. Its core is to use digital technology to solve the problem of financial service coverage on a large scale.

Distribution of major Fintech companies in Africa (data source: Digital Africa Observation, briterbridges)

According to statistics from Statista, the scale of mobile payments (transaction volume) in Africa will exceed US$195 billion in 2024, more than double that of 2020, maintaining a double-digit annual compound growth rate, and is expected to reach 2028 This scale will further grow to US$314.8 billion in 2018. Electronic payments have reached record levels in many African countries over the past two years. According to the Central Bank of Nigeria, mobile money transaction volume in Nigeria doubled in 2020 to approximately 800 million transactions; while data from South Africa showed that in 2020Online commerce grew by about 40% between 2020 and 2021. Digital payments are becoming a growing payment method on the continent. In 2023, 17% of consumers in Africa will use digital payment services every day, and the proportion of consumers using digital payment services every week will reach 48%.

Africa digital payment market size (data source: Statista)

< p style="text-align: left;">Mobile money is currently the most important and fastest-growing form of digital payment in Africa. According to the GSMA's "The State Of The Industry Report On Mobil Money" report, in 2023, the number of registered mobile money accounts in Africa will reach 856 million, accounting for 49% of global registered accounts, and 136 million new registered accounts will be added, accounting for 10% of the total growth of global registered accounts. More than 70%, it is already the main source of growth for global mobile money. There are currently about 169 mobile money services in Africa, including M-PESA, Airtel Money, Orange Money, MTN Mobile Money, Ecocash and Tigo Pesa. These platforms allow users to save, send and receive money using their mobile phones, providing traditional banking services. provides a convenient alternative, especially in areas with limited banking infrastructure. In addition to improving financial inclusion and access to other digital services, the adoption, use and growth of mobile money are also driving macroeconomic growth in Africa. Mobile money contributed more than US$150 billion to sub-Saharan Africa’s GDP growth, accounting for 3.7%. The contribution rate to GDP growth in East Africa reached 5.9%.

Contribution of mobile money to GDP in different regions (data source: GSMA)

Digital commerce, also known as e-commerce or E-Commerce, e-commerce in Africa has problems such as insufficient infrastructure construction, late start, and imperfection. However, with a large population base and a high proportion of young people, there is room for improvement. Great features attract investors from all over the world. According to Statista, the African e-commerce market is expected to reach $49.02 billion in online retail revenue in 2023, with an annual growth rate of nearly 14%. By 2027, the user base of the African e-commerce market may soar to 600 million, with a user penetration rate of 44.3%. This expansion brings multiple benefits, including economic growth, employment opportunities and improved access to goods and services in rural and remote areas.

Africa’s e-commerce industry has redefined traditional supply chains and business models. For example, Kenya’s Twiga Foods sources products directly from farmers and efficiently delivers them to urban retailers, streamlining the agricultural value chain. Egypt’s MaxAB is a platform that connects food and grocery retailers with suppliers in underserved areas. Adding to the diversity of innovative solutions in Africa’s e-commerce sector, the Pan-African Payments Settlement System (PAPSS) is a payment solution that facilitates payment transactions across Africa without relying on correspondent banks outside the continent. With more than 10 and commercial banks adopt PAPSS to help the e-commerce industry achieve substantial growth.

In addition, the digital economy is developing in traditional sub-sectors such as logistics, agriculture, education, energy, and travel. They also play an important role in driving economic and technological development, not only greater inclusivity but also innovation, for example, Kobo360 in Lagos, Nigeria, and Lori Systems in Nairobi, Kenya. The two companies introduced digital technologies and means into the traditional road transportation market, thereby improving the efficiency and reliability of the entire process and reducing the empty driving rate of trucks. As a result, the income of most drivers increased by more than 50% after cooperating with the platform. . In the past, lack of teachers, lack of tuition fees, gender gap, safety issues, long distances to school, and the lack of popularization of smartphones were the main reasons for restricting education in Africa. Therefore, Eneza Education, an educational technology company from Kenya, chose to use USSD and text messaging to provide services to feature phone users. Official website information shows that the number of users has grown to 4.9 million, the number of messages sent per day has exceeded 1 million, the cumulative number of students’ answers has exceeded 10 million, and the cumulative number of questions has exceeded 1. Millions.

1.2 Stablecoins

1.2.1 Stablecoin Market in Africa

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Cryptocurrency adoption in Africa is experiencing rapid development. According to a report by Chainalysis, in the overall global cryptocurrency adoption index ranking, Africa and Nigeria ranked second, second only to India and higher than the United States and other Europe and the United States. . And stablecoins dominate cryptocurrency adoption. From July 2022 to June 2023, cryptocurrency transfers in sub-Saharan Africa reached $117.1 billion, with stablecoins accounting for more than 50% of all asset classes. (Significantly higher than BTC, ETH, etc.)

Sub-Saharan Africa in 2023.Chart of cryptocurrency monthly trading volume by asset classification (data source: Chainalysis)

Take Nigeria, Africa's largest crypto economy, as an example. In 2022, the Central Bank of Nigeria announced It intends to redesign the fiat currency (NAIRA) and issue new banknotes to combat inflation and provide more control over the currency circulation. Unfortunately, the resulting cash shortage put a huge strain on the country's unbanked population in early 2023. Nigeria’s uncertain economic environment has encouraged more citizens to seek financial alternatives, namely increasing their holdings of cryptocurrencies (mainly stablecoins).

Nigerian cryptocurrency trading volume (data source: Chainalysis)

1.2.2 Stablecoin applications in Africa

a. Remittance

In the past few decades, funds remitted to the African continent have continued to grow, but African people are still troubled by the high cost of remittances. According to statistics from the United Nations Development Program, in the second quarter of 2022, the cost of remittances of US$200 in Africa was as high as 7.8%. Much higher than the average cost of 4%-6.4% in other regions around the world. Using cryptocurrency for remittances can significantly reduce the cost of remittances (even as low as one-twentieth of traditional remittance methods). Taking SureRemit in Nigeria as an example, it charges 0%-2% for remittances. In addition, using stablecoins for remittance can also avoid losses caused by potential asset price fluctuations. Mainstream African trading platforms such as Paxful, BuyCoins, Luno, and Quidax have all seen a large amount of stablecoin transaction demand for remittance purposes in the past period.

Remittance costs (data source: UNDP)

b . Cross-border trade

Using stablecoins for payment in cross-border trade can achieve the advantages of low fees and fast payment. Since banks play an important role in traditional cross-border trade, African trade is dominated by small and medium-sized enterprises. With the Due to factors such as tightening supervision, risk control, KYC, and exchange rate risks, cross-border trade activities supported by banks have gradually declined. In addition, the development of financial infrastructure in Africa is relatively backward, and cross-border trade generally relies on international banks, which has restricted the development of trade activities. Smart contracts using stablecoins combined with blockchain can be effectiveImprove this problem.

c. Inclusive Finance

According to statistics from the United Nations Development Program, by 2021, about 60% of the population over 15 years old in sub-Saharan Africa will not have a bank account (the global average is 26%), and women will not have a bank account The proportion is 12% higher than that of men. In terms of financial infrastructure density, there are only 4.5 commercial banks per 100,000 people in Africa (the global average is 10.8).

Many cryptocurrency service providers integrate resources from various industries to provide more comprehensive services for people who lack basic financial services. For example, SureRemit in Nigeria, in addition to providing users In addition to functions such as transfers and remittances, it has more than 1,000 merchant partners in the global network. Relying on blockchain payment technology, users can purchase goods, pay tuition, pay utility bills, donate, etc., solving the difficulties of people without bank accounts. .

It can also be seen from the following statistics that as the use of mobile phones increases in Africa, in various countries, adults with mobile money accounts are There is a significant negative correlation between the proportion of adults who do not have a financial account, indicating that those with a higher proportion of mobile money accounts show higher financial inclusion.

Cryptocurrency improves financial inclusion (data source: UNDP)

d. Preserve value and resist inflation

Many African countries have long been plagued by high inflation (double-digit annual inflation rates), which is much higher than the global average inflation rate, these The currency is facing continued sharp depreciation. After the COVID-19 epidemic, the situation has further worsened. In 2021, due to the supply chain crisis and lack of resources, the overall inflation rate in sub-Saharan Africa has increased by 3%. Stable currencies anchored to the US dollar are used as Asset reserves can significantly solve this problem, and many mainstream centralized exchanges offer stablecoin savings services to African users.

Inflation rate in sub-Saharan Africa (data source: UNDP)

1.2.3 Main stablecoins in Africa

The stablecoins mainly used in Africa include the following:

a.Tether (USDT): Currently the largest stablecoin by market capitalization (more than 110 billion U.S. dollars), it is also the most widely used stablecoin in Africa and even the world. According to Yellow Card, Africa's major crypto trading platform Christoper Maurice, founder of Tron, said USDT on Tron is one of the most popular cryptocurrencies among users across Africa. Many Africans prefer to use dollar-pegged stablecoins such as USDT on low-cost networks such as Tron in the hope of avoiding inflation.

b.USD Coin (USDC): USDC is the US dollar stable currency with the current market value second only to USDT. It is issued by Circle. Like USDT, USDC is also Actively expanding the African market, in January 2024, the cryptocurrency exchange Coinbase cooperated with Yellow Card to expand the use of its products to 20 new Africa, focusing on increasing the use of the stable currency USDC. This move will help millions of users access USDC and conduct fast, reliable, and cheaper transactions on the decentralized, open L2 Base through Coinbase and Yellow Card products.

c.WSPN USD (WUSD): WUSD is a U.S. dollar stablecoin issued by stablecoin infrastructure company WSPN, aiming to establish a global compliance system and a new The payment ecological network provides users with more secure, efficient and transparent payment solutions. In July 2024, WSPN reached a strategic cooperation with CanzaFinance, an African financial technology pioneer company. WUSD is integrated with CanzaFinance's ecosystem to provide users with convenient financial services. Users can use WUSD to conduct various financial transactions, including remittances, payments, and savings, and enjoy a smooth exchange experience between WUSD and African fiat currencies, thus accelerating The implementation of real world assets (RWA) and decentralized finance (DeFi) solutions in emerging markets such as Africa.

d.PayPal USD (PYUSD): PYUSD is a U.S. dollar stable currency issued by PayPal, the world's largest third-party payment platform.

e.Celo USD (CUSD): CUSD is a US dollar stablecoin issued by Celo. Different from the above three stablecoins, CUSD’s collateral is mainly It is a cryptocurrency, including BTC, ETH, and Celo. Celo and Opera announce cooperation to launch stablecoin wallet in 2023MiniPay, first launched in Nigeria. The wallet is integrated with Opera's mobile browser Opera Mini and is designed to help African mobile Internet users use Web3 products. Opera's mobile payment institution OPAY is also the main mobile payment provider in Africa, with more than 35 million registered users.

1.2.4 Regional differences

Africa’s digital economy shows great regional differences and differentiation. In 2023, there will be 856 million mobile money accounts across the African continent, and the transaction volume will reach 919 billion US dollars. Among them, East Africa and West Africa are leading the way in the development of mobile money. At the forefront, the two accounted for 85% of the active accounts in Africa and 90.8% of the transaction volume. Judging from active account data, in the early days, East Africa had a better foundation, while West Africa developed the fastest and grew fastest in the past 10 years.

Africa Mobile Money Overview 2023 (Data Source: GSMA)

Proportion of active mobile money accounts in Africa from 2013 to 2023 (data source: GSMA)

a. West Africa: West Africa Nigeria, Ghana, Senegal, etc. are all fast-developing crypto economies. According to a survey by Statista in 2020, 32% of Nigerians hold/have used cryptocurrencies - this proportion ranks first in the world. Nigeria is also the recipient of the most cryptocurrencies in Africa in 2023 (more than 56 billion US dollars). On the one hand, legal currencies such as the Nigerian naira and Ghanaian cedi have continued to depreciate in recent years, and inflation is high. These people seek a more secure and stable dollar to maintain value. On the other hand, Nigeria is the largest country in Africa in terms of population and economy. In 2023, Nigeria accounted for 38% of remittance flows in sub-Saharan Africa and has a large demand for remittances and payments.

b. East Africa: Kenya, Tanzania, Mauritius, etc. in East Africa It is also a relatively active economy in cryptocurrency. Among them, M-Pesa has become the largest mobile payment platform in Kenya. Through mobile phones and mobile networks, ordinary people can realize cross-border payments, short-term loans, salary collection, bill payment, wealth management and other services. , allowing those people who are not fully covered by traditional financial services to enjoy a convenient financial experience, which has indirectly improved Kenya’s overall people’s livelihood and economic conditions to a large extent.

c.Southern Africa: The crypto industry in Central and South Africa has developed rapidly in recent years. In addition to the fact that cryptocurrencies can provide cheaper and faster remittance methods, due to the relatively sound development of South Africa's financial infrastructure, more than 80% of the population has bank accounts, and ordinary people have relatively high financial literacy, so they are interested in the crypto industry and The development and adoption of stablecoins is mainly reflected in investment. A study by cryptocurrency exchange Kucoin shows that about 22% of South Africa’s adult population (7.6 million people) are cryptocurrency investors, and a large proportion of users prefer to invest digital assets. As their most preferred way of saving to earn stable returns.

1.2.5 Growth Prospects

The rapid growth of e-commerce and the widespread application of digital services , the revolutionary development of mobile payments and the uneven development of Africa will promote stablecoins to play an important role in the future African digital economy and the entire African financial system.

In recent years, the African e-commerce market has grown at an alarming rate, and it is expected that the entire market size will reach US$939.8 billion by 2030. The rise of local platforms such as Jumia (the first African technology company listed on the New York Stock Exchange) and Konga, and international giants such as Amazon, are also actively exploring the African market. This is first of all due to the huge consumption potential brought by Africa’s demographic dividend. Africa is currently It is one of the regions with the fastest growing population in the world. The current population has exceeded 1.2 billion and is expected to reach 2.5 billion by 2050. A large population base provides huge consumption potential. In particular, the young population accounts for a high proportion, the Internet penetration rate is gradually increasing, and consumption habits are gradually shifting online, which has laid a solid foundation for the development of e-commerce. In addition, African countries and private enterprises have invested heavily in Internet infrastructure construction in recent years, and the coverage of optical fiber networks and mobile communication networks has continued to increase. Smartphone penetration is also rising rapidly. The number of smartphone users in Africa is expected to reach 675 million in 2025, which provides necessary technical support for the development of e-commerce platforms. The success of mobile payment platforms like Kenya’s M-Pesa has promoted the popularity of cashless payments. With the continuous improvement of the payment system, the convenience and safety of online shopping for users have been guaranteed, further promoting the development of e-commerce.

The current number of mobile network users in Africa has reached 1.22 billion, of which 676 million are smartphone users, accounting for 55.32%. The main mobile payment platforms include M-PESA, Airtel Money, Orange Money, MTN Mobile Money, etc., these platforms are very popular in Africa, providing convenient financial services and solving the difficulties of the unbanked people. It is expected to reach 202In 8 years, the value of the African digital payment market will further grow to US$314.8 billion.

Other digital services such as online education, telemedicine, etc. are also in a period of rapid development. According to a report by Expert Market Research, the size of the African e-learning market is expected to be by 2028 Will reach US$20.35 billion, growing at a CAGR of 39.2% from 2023 to 2028. This growth will be driven primarily by increased demand for online education and training solutions, increased usage of mobile devices, and initiatives to promote digital education. The African medical market is expected to grow at an average annual rate of 8.3%, and the market size will reach US$259 billion by 2025. The rapid rise of the digital health market, such as mobile health applications, telemedicine services and electronic health record systems, will provide an opportunity to improve medical care. Accessibility and quality of services provide new solutions.

In addition to the rapid development of the digital economy, Africa's current economic development suffers from high inflation rates, currency volatility, low banking service coverage and weak financial infrastructure. and other issues, and stablecoins provide a relatively stable medium of exchange to help African people and businesses cope with these economic challenges.

2. How stablecoins can help Africa’s digital economy

Stablecoins are designed to maintain a relatively stable value. Currently, the most widely circulated ones such as USDT and USDC are Stable coins anchored to the U.S. dollar. As the largest and most important currency in global trade, the U.S. dollar remains generally stable relative to major currencies. Therefore, the use of stable coins such as the U.S. dollar can effectively resist the risk of fluctuations in some local currencies in Africa. Due to the currency Unstable and highly inflationary, most African currencies are on a long-term depreciation trend against the US dollar.

In traditional cross-border trade, banks play an important role, providing a series of services including payment settlement, trade financing, risk management and foreign exchange transactions. Small and medium-sized enterprises dominate Africa's economic activities and cross-border trade, and trade financing is very important to import and export companies. Bank-intermediated trade finance has accounted for an average of 40% of Africa's total trade over the past decade. But bank-backed trade finance has steadily declined as regulatory requirements for KYC, anti-money laundering and risk-based capital have become stricter, disproportionately reducing support for MSMEs. Other factors such as liquidity constraints, currency risk, credit risk, and time and currency costs also add to the challenges of trade finance in Africa. The use of stablecoins can significantly solve these problems, allowing payments to be completed in seconds through blockchain technology, allowing funds to flow faster among supply chains, buyers, shipping companies, sellers, etc. Small and medium-sized enterprises can get faster access to information from banks and other companies when conducting cross-border trade.Other financial institutions have obtained funds to ensure the liquidity of enterprises, and stablecoins such as USDT and USDC have been reported to have begun to be used for international trade by African small and medium-sized enterprises. In addition, the decentralized finance (DeFi) system based on stablecoins has been able to provide relatively mature financial products and services, such as credit and deposits. This underutilized trade finance potential could facilitate greater participation of SMEs in trade opportunities within the continent and in African subregions (e.g. ECOWAS, SADC, Inter-East African Development Authority, etc.).

By integrating stablecoin applications with current mobile payment platforms, transaction efficiency can be improved and costs reduced. The use of stablecoins can significantly reduce the cost and time of payments. , which is a huge attraction for users. At the same time, it can also enhance financial inclusion. Stablecoins and the decentralized financial system (DeFi) built on them will provide people without bank accounts with access to a wide range of financial services.

The low cost and fast transaction characteristics of stable coins can further improve all aspects of digital services, enhance convenience, and bring about a larger increase in user groups. In the field of micropayments, the use of stablecoins can significantly reduce the cost of micropayments, making small transactions more economical. This is particularly important for the African market, where traditional payment methods are more costly and transaction speeds are faster, enabling instant or near-instant payments. This is especially important for micropayment scenarios, as users want the payment process to be as seamless as possible. In the subscription space, stablecoins can simplify the payment process for subscription services. Users only need to set up automatic payments once, without having to perform manual operations each time. This is especially useful for African users as they may be more accustomed to using mobile devices. , at the same time, because the value of stablecoins is relatively stable, they reduce the risk of payment failure due to currency fluctuations and ensure that subscription services can continue to be provided. In addition, stablecoins can be used for various digital services, such as in-game purchases, online education, health services, etc., providing a smooth payment experience and encouraging African developers and service providers to explore new business models, such as micro-based Trading profit model. It will also help promote economic integration within the African region and promote trade and investment.

3. Challenges faced by the adoption of stablecoins

The current large-scale adoption of stablecoins in Africa still faces some challenges, including supervision, compliance, infrastructure, and public concerns , confidence, etc.

•Regulation and Compliance:

Currently, most of Africa regulates cryptocurrencies It is still in the exploratory stage and lacks clear legal and asset definitions. This part of the worry mainly comes fromDue to financial stability risks, how to properly handle the relationship between non-local currency-anchored stablecoins and fiat currencies. For example, the Central Bank of Nigeria is worried that widespread adoption of stablecoins may weaken its control over the currency, leading to capital outflows and further weakening the value of the fiat currency Naira. . Some stablecoins are anchored to assets such as the U.S. dollar. If the reserve assets of these stablecoins are not properly managed, it may trigger a potential financial panic and bring instability to the financial system, especially when stablecoins are widely used for transactions or While saving. In addition, the anonymity associated with certain cryptocurrencies may facilitate criminal activities and may be used to launder money or fund illegal transactions, affecting financial stability and security. Obviously, a clear regulatory framework for stablecoins and corresponding legal protections are crucial to the development of stablecoins.

Cryptocurrency regulation status in sub-Saharan Africa (data source: UNDP)

•Limited infrastructure:

Mobile networks (4G/5G) and the Internet are important infrastructure supporting the digital economy. Currently, Africa’s 4G network coverage is only 50%, which is far lower than the world average. Some places even only have 2G networks, except for South Africa. The Internet penetration rate in relatively developed economies is relatively high, but the Internet penetration rate in Africa is only about 30%, which to some extent limits the development of the digital economy and stablecoin economic ecology.

Global mobile network coverage (data source: International Telecommunications Union)

Proportion of Internet users in the population (data source: World Bank)

•Social concerns and education:

The anonymity associated with crypto transactions often raises concerns about criminal activity. Social engineering scams, phishing attacks, and fraudulent investment schemes targeting stablecoins can have a greater impact on newcomers. Especially those who live outside cities or have limited exposure to technology may not be very familiar with stablecoins or cryptocurrencies. This lack of awareness could hinder the mass adoption of stablecoins and leave them vulnerable to fraud or misinformation. Understanding the working principles, risks and benefits of stablecoins, and how to use them safely requires a certain degree of financial literacy. It also requires corresponding institutions to increase publicity and provide targeted basic financial education. Additionally, even stablecoins that are pegged to fiat currencies may experience some degree of price volatility. Such fluctuations may trigger potential usersconcerns, especially for those who are unfamiliar with the crypto markets or have limited financial resources.

4. Case Study

•OnAfriq (MFS Africa)

OnAfriq (formerly MFS Africa) ) is Africa's largest cross-border payment platform, founded in 2009, and is committed to promoting the development of Africa's digital economy through digital payment solutions and financial services. OnAfriq has branches in major economies such as Nigeria, South Africa, and Ghana. Its core businesses include digital wallets, cross-border payment solutions, stable currency services, and financial technology products.

As of 2024, OnAfriq has more than 500 million users, covering more than 40 countries in Africa. Individual users use OnAfriq for daily transactions, cross-border remittances and micropayments, while corporate users leverage its cross-border payment solutions and merchant collection services, especially to transact with overseas suppliers and customers. OnAfriq supports a variety of stablecoins, including USDC, USDT, DAI and EURC, and also issued AfriqCoin, a stablecoin pegged to the U.S. dollar, dedicated to cross-border payments with handling fees as low as 0.5% to 1%.

OnAfriq partners with international financial institutions and local banks, including Visa, Mastercard, Ecobank and Stanbic Bank, and with stablecoin provider Circle to leverage the stability of USDC and broad acceptance to expand business in Africa. The OnAfriq platform supports USDC payments, transfers, and storage, and provides DeFi products such as high-yield deposits, lending, and asset management.

OnAfriq has significantly improved financial inclusion in Africa. There are more than 500 million digital wallet users, most of whom have no bank accounts before. OnAfriq provides financial education and training to more than 1 million people, helping users improve their financial literacy. Its digital payment platform and stablecoins (such as AfriqCoin) improve the efficiency of cross-border payments, reduce costs, promote trade within and outside the region, and shorten processing time to 2 minutes. OnAfriq also provides payment gateway services for local e-commerce and merchants to support online transactions and digital market development. In the future, OnAfriq plans to launch more innovative products, such as digital insurance and decentralized financial loans, to continue to promote the digital transformation of the African economy.

•AZA Finance

AZA Finance, founded in 2013, is a leading financial technology company in the African market, focusing on providing cross-border payment and foreign exchange solutions. The company optimizes the cross-border payment process through its innovative technology platform, Improved financial mobility between Africa and the rest of the world by 2024, AZA. Finance's cross-border payment and transfer platform has processed more than 15 million transactions with a total value of US$9 billion, with more than 1.5 million users and more than 183 services.

AZA Finance’s cross-border payment solutions support the implementation of the African Continental Free Trade Area (AfCFTA). By simplifying cross-border payment processes and reducing transaction costs, AZA Finance provides strong support for trade activities among AfCFTA member countries, thereby promoting the integration of African regional economies

AZA Finance on its payment platform. Supporting USDC and USDT, in 2023, the transaction volume of stablecoins accounted for 30% of the total transaction volume on the AZA Finance platform, showing the strong market demand and acceptance of stablecoins

•WSPN

WSPN (Worldwide Stablecoin Payment Network) is a global digital payments company dedicated to providing services through the latest distributed ledger technology (DLT) Transparent, fast and efficient digital payment solutions promote the development of digital payments and financial inclusion in the future. The company successfully raised US$30 million in seed round financing, with investors including Foresight Venture, Folius Ventures and other well-known institutions.

In the global digital payment landscape, WSPN has successfully opened up the African market through cooperation with the innovative AA wallet StableWallet. This cooperation has laid a solid foundation for WSPN's market penetration and financial inclusion goals in Africa. laid a solid foundation and marked an important milestone in its globalization strategy

In this cooperation, WSPN and StableWallet have attracted a large number of new users to register and use WUSD through diversified promotion activities. These users can not only experience the convenient payment function of WSPN stablecoin, but also enjoy generous WUSD rewards .

ThisIn addition, WSPN will also cooperate with more projects and jointly build Telegram miniapp communities and other innovative methods to further improve user experience and promote the popularity of WUSD in the African market. The wallet based on account abstraction technology makes WSPN's WUSD easier to use while providing users with a seamless cross-chain payment experience.

Through this cooperation, WSPN’s success in the African market is not only reflected in the rapid growth in the number of users, but also in its use of stablecoin technology to bring stability to the local market. financial inclusion. In the future, WSPN will continue to promote digital payment innovation in African and global markets through collaboration with global partners, and build a more transparent, efficient and user-friendly digital payment ecosystem.

•Future Outlook

The successful experiences of OnAfriq, AZA Finance and WSPN demonstrate stablecoins How to improve financial services in the African region and promote economic development in Africa. For other industries and technology companies in Africa, the key entry points lie in the following aspects:

1. Focus on improving financial infrastructure

Develop local blockchain technology infrastructure to improve transaction processing capabilities and security to support more stablecoin transactions. At the same time, we will promote interconnection among financial institutions, strengthen cooperation between banks and non-bank financial institutions, and create a broader payment network. Promote the use of digital wallets to the public, support the storage and transfer of stable coins, and further introduce on-chain financial infrastructure such as DeFi to improve the convenience of use.

2. Promotion and improvement of regulatory framework

For example, AZA Finance is supporting stablecoin payment At the same time, we strictly abide by international and local financial regulations to ensure compliant operations. Countries are encouraged to formulate regulations for the use and trading of stablecoins, provide legal operating space, and prevent illegal activities. At the same time, regional cooperation is encouraged to formulate common regulatory standards and promote the legalization and standardization of cross-border stablecoin payments.

3. Improve public and corporate awareness and acceptance of stablecoins

OnAfriq Through extensive user education and promotion activities, public awareness and acceptance of stablecoins have been enhanced. Through online and offline educational activities, media promotion and financial knowledge popularization, to help the public understand the advantages and uses of stablecoins. Work with local businesses to promote their acceptance and use of stablecoins as payment options and increase the use of stablecoins in commercial transactions. Encourage the use of stablecoins in various daily transactions, such as paying bills, purchasing goods and services, etc., to increase its popularity in public life.

4. Strengthen cooperation and establish strong partnerships

OnAfriq and global stability Cooperation with currency issuer Circle has enhanced its competitiveness in the global payment market. Cooperate with stablecoin issuers such as Circle and Tether to introduce more stablecoin options and expand application scenarios. Cooperate with blockchain and financial technology companies to improve technology and optimize payment and transaction systems. Establish cooperative relationships with international financial institutions, promote the use of stablecoins, and expand the global payment network.

5. References

New report from Endeavor Nigeria says Africa's technology ecosystem is poised for exponential growth

https://nigeria.endeavor.org/new-report-from-endeavor-nigeria-says-africas-technology-ecosystem-is-poised-for-exponential-growth/

Digital Empowering Africa

https://36kr.com/p/1725093740545

Research: Africa’s digital payments are about to exceed US$195 billion

https://m.mpaypass.com.cn/news/202408/09111348.html

《The State Of The Industry Report On Mobil Money 》——GSMA

https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf

The 2023 Geography of Cryptocurrency Report——Chainalysis

https://go.chainalysis.com/geography-of-cryptocurrency-2023.html

Cryptocurrency in Africa——UNDP

https://www.undp.org/africa/publications/cryptocurrency-africa-alternative-opportunities-advancing-sustainable-development-goals

Stablecoins find a use case in africas most volatile markets

https://restofworld.org/2021/stablecoins-find-a-use-case-in-africas-most-volatile-markets/

fintech and crypto assets in the central african republic——IMF

https://www.elibrary.imf.org/downloadpdf/journals/002/2023/156/article-A001-en.xml