The role of stablecoins in Africa’s digital economy

Author: WSPN

1. Introduction

1.1 Digital Economy in Africa

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 by 2022, and rich natural resources. According to statistics from the World Bank, in 2022, the GDP of the African continent will be about 2.98 trillion US dollars, and it will maintain an annual growth rate of more than 3%. According to a report by Endeavor, the scale of the digital economy in Africa will be about 115 billion US dollars in 2022, accounting for 3.86% of GDP. It is expected to reach 712 billion US dollars in 2050. In contrast, the scale of Asia's digital economy will account for more than 30% of GDP in 2022. Africa's digital economy has great potential for development.

The digital economy covers multiple industries such as digital finance, digital business, and digital education. Digital finance integrates traditional finance with digital technology. As many as 66% of the population in Africa do not have bank accounts. People and businesses in all African countries face challenges such as difficulty in payment, loan, savings, and insurance. The number of related financial technology companies in Africa has surged in recent years. According to statistics, African Fintech companies raised nearly $200 million in 2017, and the top 10 African Fintech companies raised nearly $300 million in 2018. In 2019, the total investment of more than $5 million in a single financing amount has exceeded $580 million. The hottest industries in African digital finance are mobile payments (digital wallets), online lending, and online remittances. Inclusive finance is one of the biggest opportunities for Africa's digital industry, and 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 Statista statistics, in 2024, the scale of mobile payments in Africa (transaction volume) will exceed US$195 billion, more than double that of 2020, maintaining a double-digit annual compound growth rate, and it is expected that this scale will further increase to US$314.8 billion by 2028. In the past two years, the scale of electronic payments in many African countries has set a record high. According to data from the Nigerian Central Bank, mobile money transactions in Nigeria doubled to about 800 million in 2020, while data from South Africa showed that online commerce grew by about 40% between 2020 and 2021. Digital payments are becoming a growing payment method on the African 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's digital payment market size (data source: Statista)

Mobile money is currently the most important and fastest growing form of digital payment in Africa. According to the GSMA "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 the global registered accounts, and the number of newly registered accounts will reach 136 million, accounting for more than 70% of the total growth of global registered accounts. It has become 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 a convenient alternative to traditional banking, 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 have also driven macroeconomic growth in Africa. Mobile money contributed more than $150 billion to GDP growth in Sub-Saharan Africa, a contribution rate of 3.7%. It contributed 5.9% to GDP growth in East Africa.

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

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

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

In addition, the digital economy also plays an important role in traditional sub-sectors such as logistics, agriculture, education, energy, and travel. While promoting economic and technological development, it is not only more inclusive, but also drives innovation. For example, Kobo360 in Lagos, Nigeria and Lori Systems in Nairobi, Kenya, introduced digital technologies and means into the traditional road transport market, thereby improving the efficiency and reliability of the entire process and reducing the empty driving rate of trucks, which has increased the income of most drivers by more than 50% after cooperating with the platform. In the past, the lack of teachers, lack of tuition, gender gap, safety issues, long distances to school, and the lack of popularity of smartphones were the main reasons for restricting education in Africa. Therefore, Eneza Education, an educational technology company from Kenya, chose to provide services to feature phone users through USSD and SMS. According to the official website, its number of users has grown to 4.9 million, the number of messages sent per day exceeds 1 million, the cumulative number of students answering questions has exceeded 10 million, and the cumulative number of questions asked has also exceeded 1 million.

1.2 Stablecoins

1.2.1 Stablecoin Market in Africa

Cryptocurrency adoption in Africa is experiencing rapid development. According to the Chainalysis report, in the global cryptocurrency overall adoption index ranking, Nigeria ranks second in Africa, second only to India, and higher than the United States and other European and American countries. Stablecoins have a dominant position in cryptocurrency adoption. From July 2022 to June 2023, the amount of cryptocurrency transfers in sub-Saharan Africa reached US$117.1 billion, and stablecoins accounted for more than 50% of various asset categories (significantly higher than BTC, ETH, etc.).

Monthly cryptocurrency trading volume in sub-Saharan African countries by asset classification in 2023 (data source: Chainalysis)

Take Nigeria, Africa's largest crypto economy, as an example. In 2022, the Central Bank of Nigeria announced its intention to redesign the legal tender (NAIRA) and issue new banknotes to combat inflation and exercise more control over the amount of money in circulation. Unfortunately, the resulting cash shortage has put tremendous pressure on the country's unbanked population, and in early 2023. Nigeria’s uncertain economic environment has encouraged more citizens to seek financial alternatives, namely increasing their cryptocurrency holdings (mainly stablecoins).

Nigeria’s cryptocurrency trading volume (data source: Chainalysis)

1.2.2 Stablecoin applications in Africa

a. Remittance

     Over the past few decades, the amount of money remitted to the African continent has continued to grow, but Africans 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 remitting $200 in Africa was as high as 7.8%, far higher than the average cost of 4%-6.4% in other parts of the world. Using cryptocurrencies for remittances can significantly reduce remittance costs (even as low as one twentieth of traditional remittance methods). For example, SureRemit in Nigeria charges a fee of 0%-2% for remittances. In addition, using stablecoins for remittances can also avoid losses caused by potential asset price fluctuations. Paxful, BuyCoins, Luno, Quidax and other mainstream African trading platforms have all seen a large number of stablecoin trading demands for remittance purposes in the past period of time.

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 arrival. Since banks play an important role in traditional cross-border trade, and Africa's trade is mainly small and medium-sized enterprises, with stricter supervision, risk control, KYC, exchange rate risk and other factors, cross-border trade activities supported by banks have gradually declined. In addition, the financial infrastructure in Africa is relatively backward, and cross-border trade generally relies on international banks, which restricts the development of trade activities. The use of stablecoins combined with blockchain smart contracts can effectively improve 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 the proportion of women without a bank account is 12% higher than that of men. From the perspective 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 to people who lack basic financial services. For example, SureRemit in Nigeria, in addition to providing users with functions such as transfer and remittance, has more than 1,000 merchant partners in its global network. Relying on blockchain payment technology, users can purchase goods, pay tuition fees, pay utility bills, make donations, 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 in Africa increases, in various countries, the proportion of adults with mobile money accounts and adults who have never had financial accounts is significantly negatively correlated, indicating that countries with a higher proportion of mobile money accounts show higher financial inclusion.

Cryptocurrency improves financial inclusion (data source: UNDP)

d. Hedging and resisting inflation

Inflation rates in some countries in sub-Saharan Africa (data source: UNDP)

1.2.3 Major stablecoins in Africa

The main stablecoins used by African countries include the following:

a. Tether (USDT): USDT on Tron is one of the most popular cryptocurrencies for users across Africa, according to Christoper Maurice, founder of Yellow Card, a major African crypto trading platform. Many Africans prefer to use stablecoins pegged to the US dollar (such as USDT) on low-cost networks such as Tron in order to avoid domestic inflation.

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

c. WSPN USD (WUSD): WUSD is a USD stablecoin issued by WSPN, a stablecoin infrastructure company, which aims to provide users with safer, more efficient and transparent payment solutions by establishing a global compliance system and a new payment ecological network. In July 2024, WSPN reached a strategic cooperation with CanzaFinance, a pioneer in African financial technology. WUSD is integrated with CanzaFinance's ecosystem to provide users with convenient financial services. Users can use WUSD for various financial transactions, including remittances, payments and savings, and enjoy a smooth exchange experience between WUSD and African legal currencies, thereby 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 USD stablecoin issued by PayPal, the world's largest third-party payment platform.

e.Celo USD（CUSD）：CUSD is a US dollar stablecoin issued by Celo. Unlike the above three stablecoins, CUSD's collateral is mainly cryptocurrencies, including BTC, ETH, and Celo. In 2023, Celo and Opera announced a partnership to launch the stablecoin wallet MiniPay, which will be first promoted in Nigeria. The wallet is integrated with Opera's mobile browser Opera Mini, aiming to help African mobile Internet users use Web3 products, and Opera's mobile payment agency 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 in the entire African continent, with a transaction volume of US$919 billion. Among them, East Africa and West Africa are at the forefront of the development of mobile money, with the number of active accounts accounting for 85% of the whole of Africa and the transaction volume accounting for 90.8%. Judging from the data on active accounts, East African countries had a better foundation in the early days, while West African countries have developed the fastest and grown the fastest in the past 10 years.

Overview of Mobile Money in Africa in 2023 (Data Source: GSMA)

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

a. West Africa:Nigeria, Ghana, Senegal and other West African countries are all fast-growing crypto economies. According to a survey by Statista in 2020, 32% of Nigerians hold/use cryptocurrencies - this proportion ranks first in the world. Nigeria is also the country with the largest cryptocurrency recipients in Africa in 2023 (more than $56 billion). On the one hand, legal currencies such as the Nigerian Naira and the Ghanaian Cedi have continued to depreciate in recent years, and domestic inflation is high. People in these countries are looking for safer and more value-preserving US dollar stablecoins. 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, with a large demand for remittances and payments.

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

c. South Africa:In recent years, the crypto industry in South Africa has developed rapidly. In addition to the fact that cryptocurrencies can provide cheaper and faster means of remittance, South Africa has a relatively sound financial infrastructure, more than 80% of the population has bank accounts, and the financial literacy of ordinary people is relatively high. Therefore, the development and adoption of the crypto industry and stablecoins are mainly reflected in investment. A study by Kucoin, a cryptocurrency exchange, shows that about 22% of the adult population in South Africa (7.6 million people) are cryptocurrency investors, and a large number of users prefer digital assets as their favorite way of saving to obtain stable returns.

1.2.5 Growth Prospects

The rapid growth of e-commerce, the widespread use of digital services, the revolutionary development of mobile payments, and the uneven development of African countries themselves will all 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 astonishing rate, and the entire market size is expected to reach US$939.8 billion by 2030. Local platforms such as Jumia (the first African technology company listed on the New York Stock Exchange) and Konga have emerged, and international giants such as Amazon are also actively deploying in the African market. This is first of all due to the huge consumption potential brought by Africa's demographic dividend. Africa is currently one of the fastest growing regions in the world, with a current population of more than 1.2 billion and an estimated population of 2.5 billion by 2050. The huge population base provides huge consumption potential. In particular, the high proportion of young people, the gradual increase in Internet penetration, and the gradual shift of consumption habits to online have laid a solid foundation for the development of e-commerce. In addition, African governments and private enterprises have invested a lot of money in Internet infrastructure construction in recent years, and the coverage of fiber optic networks and mobile communication networks has continued to increase. The penetration rate of smartphones is also rising rapidly. In 2025, the number of smartphone users in Africa is expected to reach 675 million, which provides the necessary technical support for the development of e-commerce platforms. The success of mobile payment platforms such as M-Pesa in Kenya has promoted the popularization of cashless payments. With the continuous improvement of the payment system, the convenience and security of users' online shopping have been guaranteed, which has further promoted the development of e-commerce.

Currently, there are 1.22 billion mobile network users in Africa, 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 popular in Africa, providing convenient financial services and solving the difficulties of the unbanked population. It is expected that by 2028, the value of the African digital payment market will further grow to US$314.8 billion.

Other digital services such as online education and telemedicine 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 reach US$20.35 billion by 2028, with a compound annual growth rate of 39.2% from 2023 to 2028. This growth is mainly driven by the increased demand for online education and training solutions, the increased use of mobile devices, and government 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, provides new solutions for improving the accessibility and quality of medical services.

In addition to the rapid development of the digital economy, the current economic development in Africa has problems such as high inflation, currency volatility, low coverage of banking services, and weak financial infrastructure. Stablecoins provide a relatively stable medium of exchange to help African people and businesses cope with these economic challenges.

2. How stablecoins help Africa's digital economy

Stablecoins are designed to maintain a relatively stable value. Currently, the most widely circulated stablecoins such as USDT and USDC are all stablecoins anchored to the US dollar. As the largest and most important currency in global trade, the value of the US dollar relative to the currencies of major countries remains generally stable. Therefore, the use of stablecoins such as the US dollar can effectively resist the volatility risk of local currencies in some African countries. Due to unstable monetary policies and high inflation, most African currencies have been in a long-term depreciation trend relative to 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 the economic activities and cross-border trade in African countries, and trade financing is very important for import and export companies. Bank-mediated trade financing has accounted for an average of 40% of Africa's total trade in the past decade. However, due to stricter KYC, anti-money laundering and risk-based capital regulatory requirements, bank-backed trade finance has steadily declined, disproportionately reducing support for SMEs. Other factors such as liquidity constraints, currency risk, credit risk, and time and currency costs also increase the challenges of trade financing in Africa. The use of stablecoins can significantly solve these problems. Payments can be completed in seconds through blockchain technology, making the flow of funds between supply chains, buyers, shipping companies, sellers, etc. faster. When conducting cross-border trade, SMEs can obtain funds from banks and other financial institutions more quickly to ensure the liquidity of enterprises. Stablecoins such as USDT and USDC have been reported to have begun to be used for international trade of African SMEs. 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 can promote SMEs to participate more in trade opportunities within the African continent and in African sub-regions (such as the Economic Community of West African States, the Southern African Development Community, and the Intergovernmental Authority on Development in East Africa).

By integrating stablecoin applications with current mobile payment platforms, transaction efficiency can be improved and costs can be 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 stablecoins can also further improve all aspects of digital services, enhance convenience, and bring a larger user base. 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. Traditional payment methods are costly, while fast transaction speeds can achieve instant or near-instant payments, which is particularly important for micropayment scenarios because users want the payment process to be as seamless as possible. In the subscription field, stablecoins can simplify the payment process for subscription services. Users only need to set up automatic payment once, without having to perform manual operations every time. This is especially useful for African users because they may be more accustomed to using mobile devices for operations. At the same time, since the value of stablecoins is relatively stable, they reduce the risk of payment failures caused by currency fluctuations and ensure that subscription services can be continuously 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 will also encourage African developers and service providers to explore new business models, such as profit models based on micro-transactions. It will also help promote economic integration within the African region and promote trade and investment.

3. Challenges facing the adoption of stablecoins

The large-scale adoption of stablecoins in Africa currently faces some challenges, including government supervision, compliance, infrastructure, public concerns, confidence, etc. • Regulation and Compliance: Currently, most African countries are still in the exploratory stage of cryptocurrency regulation, lacking clear legal and asset definitions. The concerns of these governments mainly come from financial stability risks and how to properly handle the relationship between non-local currency-anchored stablecoins and legal tender. For example, the Central Bank of Nigeria is worried that the widespread adoption of stablecoins may weaken its control over monetary policy, leading to capital outflows and further weakening the value of the legal tender, the Naira. Some stablecoins are anchored to assets such as the US dollar. If the reserve assets of these stablecoins are not properly managed, they may trigger potential financial panic and bring instability to the financial system, especially when stablecoins are widely used in transactions or savings. In addition, the anonymity associated with certain cryptocurrencies may promote criminal activities and may be used for money laundering or to finance illegal transactions, affecting financial stability and security. Obviously, a clear regulatory framework for stablecoins and corresponding legal guarantees are crucial to the development of stablecoins.

Current Status of Cryptocurrency Regulation in Sub-Saharan African Countries (Data Source: UNDP)

• Limited Infrastructure:

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

Global mobile network coverage (data source: International Telecommunication 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 activities. Social engineering scams, phishing attacks, and fraudulent investment schemes for stablecoins may have a greater impact on novices. In particular, those who live outside urban areas or have limited exposure to technology may not be very familiar with stablecoins or cryptocurrencies. This lack of awareness may hinder the large-scale adoption of stablecoins and make 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, and the government or corresponding institutions need to increase publicity and carry out targeted basic financial education. In addition, even stablecoins pegged to fiat currencies may experience a certain degree of price volatility. Such volatility may cause concerns among potential users, especially for those who are unfamiliar with the crypto market or have limited financial resources.

4. Case Studies

• OnAfriq (MFS Africa)

OnAfriq (formerly MFS Africa) is Africa’s largest cross-border payment platform. Founded in 2009, OnAfriq (formerly MFS Africa) 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, stablecoin services, and fintech products.

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

OnAfriq works with international financial institutions and local banks, including Visa, Mastercard, Ecobank and Stanbic Bank, and with stablecoin provider Circle, to expand its business in Africa with the stability and wide acceptance of USDC. 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, with more than 500 million digital wallet users, most of whom previously had no bank accounts. OnAfriq has provided financial education and training to more than 1 million people to help users improve their financial literacy. Its digital payment platform and stablecoins, such as AfriqCoin, improve cross-border payment efficiency, reduce costs, and promote intra-regional and extra-regional trade, with processing time reduced to 2 minutes. OnAfriq also provides payment gateway services to local e-commerce and merchants, supporting online transactions and the development of digital markets. 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 fintech company in the African market, focusing on providing cross-border payment and foreign exchange solutions. Through its innovative technology platform, the company optimizes the cross-border payment process and improves the liquidity of funds between Africa and the rest of the world. As of 2024, AZA Finance's cross-border payment transfer platform has processed more than 15 million transactions with a total value of US$9 billion, with a total number of more than 1.5 million users and serving more than 183 countries.

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 between AfCFTA member countries, thereby promoting the integration of the African regional economy.

AZA Finance supports USDC and USDT on its payment platform. 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 payment company dedicated to providing transparent, fast and efficient digital payment solutions through the latest distributed ledger technology (DLT) to promote the development of future digital payments and financial inclusion. The company successfully raised $30 million in the seed round of 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, marking an important milestone in its globalization strategy.

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

In addition, WSPN will further enhance the user experience and promote the popularity of WUSD in the African market by cooperating with more projects and jointly building Telegram miniapp communities and other innovative methods. 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 of the number of users, but also in the financial inclusion it brings to the local market through stablecoin technology. In the future, WSPN will continue to promote digital payment innovation in the 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 have demonstrated how stablecoins can improve financial services in Africa and promote the development of the African economy. For other industries and technology companies in Africa, the key entry points are as follows:

1. Focus on improving financial infrastructure

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

2. Promote the improvement of policy and regulatory framework

For example, AZA Finance strictly abides by international and local financial regulations while supporting stablecoin payments to ensure compliance operations. Governments are encouraged to formulate norms 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 to promote the legalization and standardization of cross-border stablecoin payments.

3.  Improve the public and corporate awareness and acceptance of stablecoins

OnAfriq has improved the public's awareness and acceptance of stablecoins through extensive user education and promotion activities. Through online and offline educational activities, media publicity and popularization of financial knowledge, the public is helped to understand the advantages and usage of stablecoins. Work with local companies to promote their acceptance and use of stablecoins as a payment option 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, and increase their popularity in public life.

4. Strengthen cooperation and establish strong partnerships

OnAfriq cooperates with Circle, a global stablecoin issuer, to enhance 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 fintech companies to improve technology and optimize payment and transaction systems. Establish partnerships with international financial institutions to 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 empowerment in Africa https://36kr.com/p/1725093740545 Research: Digital payments in Africa are about to exceed $195 billion left;">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