When Emmanuel, a Nigerian software engineer in London, sends part of his paycheck home each month, he faces a familiar problem: high fees and long delays. A $500 transfer through traditional services like Western Union costs up to $40 in fees and takes days to arrive. Exchange rate slippage further erodes the total by the time his mother in Lagos can access the funds.
Now consider the same transfer using stablecoins. Fees drop below $5, money arrives in minutes, and blockchain technology provides transparent transaction records. For millions of Africans abroad, this isn’t hypothetical. In fact, according to AfriDigest.com, 2024 data revealed shifting dynamics in Africa’s $100B remittance market in 2024, as Ghana emerged as the continent’s fastest-growing recipient of remittances.
The Remittance Crisis
Remittances, also referred to as cross-border financial transfers among family members, represent more than money sent to loved ones; they are often economic lifelines. And it’s big business. For example, Nigeria received $20.93 billion in remittances in 2024, according to the Central Bank of Nigeria. Ghana recorded $4.6 billion in remittances in 2024, according to the Bank of Ghana. These flows fund education, healthcare, and small business investments across both countries. And they are on the rise.
Sending money to Africa is still painfully expensive. According to the World Bank, in late 2023, the average cost of sending just $200 to Sub-Saharan Africa was 7.9%—the highest of any region worldwide and more than double the UN Sustainable Development Goal target of 3%. Some corridors charged staggering fees, reaching well into double digits, making remittances a punishing burden on the very households that rely on them most.
Ghana and Nigeria, two of the continent’s largest remittance destinations, together received over $25 billion annually, yet families there routinely lose a significant slice of their transfers to intermediaries that extract a rent-seeking premium for moving money from one place to another. For a Ghanaian farmer or a Nigerian student’s family, that can mean the difference between paying school fees on time or going without essentials.
Stablecoins: Digital Dollars on Your Phone
Stablecoins are cryptocurrencies pegged to stable assets, typically the U.S. dollar. Unlike volatile cryptocurrencies such as bitcoin, stablecoins maintain consistent value through reserves of liquid assets like cash and short-term U.S. Treasury securities. Popular stablecoins include USDC (Circle) and USDT (Tether). In Nigeria, fintechs and regulators have launched cNGN, a locally-issued, regulated stablecoin pegged to the local currency, the Naira. Although Ghana does not currently have dedicated stablecoin legislation like Nigeria’s SEC framework, stablecoins would fall under the broader Virtual Asset Service Providers (VASP) framework currently being developed.
The value is simple: transfer money as easily as sending a message, with fees under 1% and settlement in just minutes.
Regulatory Evolution in Two Key Markets
Nigeria: From Prohibition to Innovation
Nigeria’s regulatory turnaround has—like that of the United States—been dramatic. In 2021, the Central Bank of Nigeria restricted banks from servicing crypto businesses, but by December 2023 introduced guidelines allowing registered Virtual Asset Service Providers (VASPs) to open accounts with banks.
The Investment & Securities Act 2025 now recognizes virtual and digital assets as securities under SEC regulation. Meanwhile, in February 2025, Nigeria launched cNGN, a naira-pegged, regulated stablecoin under the SEC, which aims in part to facilitate cross-border payments. Uptake of stablecoins by the diaspora is rising, with many choosing dollar-pegged tokens like USDT or USDC and using fintech or peer-to-peer networks to send or cash out funds, though the scale and legal infrastructure are still evolving. Nigeria also launched a central bank digital currency, eNaira; however, only 0.36% of currency in circulation as of March 2024, with 98.5% of wallets never being used (IMF data). Despite achieving technical operation, the absence of trust and adoption has cooled enthusiasm for the government-controlled project.
Ghana: Building on Mobile Money Success
Ghana’s foundation in mobile money, or “momo”, with over 40 million accounts serving 60% of adults, positions it uniquely for digital asset adoption. The Bank of Ghana is piloting the eCedi, a central bank digital currency with offline functionality crucial for rural areas lacking internet connectivity.
Cooperative Economics in Practice
This cooperative approach represents more than technological adoption. It demonstrates community empowerment. When small businesses collectively reduce transaction costs, they strengthen local economies. When families save 5% or more on each remittance, those funds support education, healthcare and entrepreneurship rather than enriching middlemen who often don’t contribute to the local community’s success or economy.
Africa as Innovation Leader
Contrary to outdated stereotypes positioning Africa as a follower in global finance, the Continent is pioneering digital payment solutions on its own terms. These countries aren’t experimenting for novelty, they are working to solve concrete problems, including remittance costs, currency instability and financial exclusion. Local solutions with a global impact.
Real-World Impact
The practical benefits extend beyond cost savings:
A Ghanaian cocoa farmer receives instant international payments, eliminating weeks of settlement delays. A Nigerian student abroad sends money home without losing 10% to fees. West African SME cooperatives pool liquidity to reduce costs for all members.
For families living paycheck-to-paycheck, saving even a few dollars per transaction creates transformative economic impact.
The Quiet Revolution
Western cryptocurrency discussions often focus on “number go up” speculation, ETFs, or startup valuations. In West Africa, the conversation centers on survival, dignity, and economic empowerment. Perhaps the birthplace of civilization can give birth to the full realization of cryptocurrency’s original peer-to-peer cash promise, as described in bitcoin inventor Satoshi Nakamoto’s 9-page white paper.
Stablecoins show that digital assets don’t have to be casinos for the wealthy; they can be bridges for everyday people. Each time someone like Emmanuel in London sends money home, he’s part of a quiet revolution, building financial systems designed to serve communities first. From Lagos to Accra, that 21st-century cooperative economics revolution is already underway. One transaction, law and regulation at a time.
