Messari Research recently analyzed through a report how stablecoins provide 'dollar accessibility' and play a crucial role in expanding financial inclusion in developing countries with limited financial access. In countries with high inflation like Kenya, Nigeria, and Ukraine, and regions with weak financial infrastructure, stablecoins are expanding their position as practical safe assets and digital remittance tools.
The infrastructure gap of traditional financial institutions makes financial services difficult to access. According to the report, the number of bank branches or ATMs per 100,000 adults in developing countries is significantly lower compared to developed countries. In this reality, mobile money agencies (MMAO) or non-branch retail agencies (RAO) have partially alleviated financial exclusion issues in some areas. However, due to regional disparities, limitations exist, which in turn provides new opportunities for stablecoins.
According to Messari Research analysis, stablecoins dramatically lower dependence on physical financial infrastructure by enabling key services like remittance, storage, and payment with just a basic smartphone and internet. A representative example is Kenya's M-PESA, which supported transactions of trillions of Kenyan shillings (KSH) through offline agencies and realized a certain level of financial inclusion, but its cost efficiency was low, with fees around 1.5% even for small remittances. In contrast, stablecoin transfer fees through the SOL blockchain are very low, at about $0.004.
U.S. Federal Reserve officials are also positively evaluating stablecoins' dollar pegging. Federal Reserve Board member Waller mentioned, "Stablecoins based on the global currency, the U.S. dollar, hold significant value in terms of accessibility and utilization in high-inflation regions," reflecting a shift in perception.
In high-inflation countries, stablecoin demand is explosively increasing. As of 2024, regions like Turkey, Argentina, Venezuela, and Nigeria have seen a surge in the use of USDT and USDC to find stable foreign currency assets. The research cited address-based data collected from seven major blockchains, showing that the number of stablecoin transactions in these countries increased by an average of over 300% annually.
The usefulness of stablecoins was even more prominent in disaster situations. When Ukraine implemented capital controls during Russia's invasion in 2022, citizens massively converted to USDT to protect their assets. During this period, the USDT/UAH trading pair was traded at a premium of over 10% compared to the official exchange rate, a phenomenon triggered by demand for accessibility and trust. According to Elliptic, Ukraine has received millions of dollars in donations through USDT.
In fact, the number of stablecoin users in Ukraine increased sharply after the war's outbreak. According to Addressable's data, the number of new users increased from an average of 43,000 per month in 2021 to about 635,000 in 2023.
The number of users using stablecoins as a savings tool rather than for short-term trading is also increasing. According to Tether, the proportion of 'Saver' users on self-custodial wallets has surpassed exchanges or remittance-focused accounts in total USDT holdings. This indicates a clear trend of choosing stablecoins as a means to avoid inflation and preserve future assets.
Sub-Saharan Africa currently accounts for only 2.7% of on-chain activity, but cryptocurrency usage is rapidly increasing. Nigeria ranks second in the global cryptocurrency adoption index, while Ethiopia, Kenya, and South Africa have entered the top 30. Notably, stablecoins account for 43% of the region's total on-chain transaction volume.
Yellow Card has emerged as a leading company driving stablecoin distribution in the African market. Relaunched in Lagos in 2019, this platform now operates a full-stack financial ecosystem that enables cryptocurrency trading, dollar savings, and fee-free cross-border remittances. Their API and liquidity network support a wide range of functions from payment settlements for SMEs to local currency hedging.
Stablecoins are clearly establishing themselves as a new financial infrastructure for global finance. Especially in developing countries, they are functioning beyond simple blockchain utility as a means of survival and a long-term stable asset. Messari Research noted the possibility that this trend could be a driver for partially reshaping the global financial order.
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