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Republished from Africa in Brief - October 24, 2025
Source: IMF Working Paper
The IMF’s Decrypting Crypto (July 2025) is supposedly the first study to use AI to track where $2T in stablecoins actually flowed in 2024 and Africa is relevant.
What the study found
- As expected, stablecoin activity was highest in North America ($633B) and Asia-Pacific ($519B) but Africa and the Middle East ranked second globally relative to GDP (6.7%), showing how quickly the region is embracing digital dollars.
- In Africa, only 14% of flows stayed within the region, suggesting that most activity supports cross-border remittances, trade and dollar access.
- Users leaned heavily on Binance (74%) over Coinbase (26%) and favored Tether’s USDT (57%) over USDC (43%), reflecting Africa’s tilt toward emerging market exchanges and tokens.
- Average transaction size: $13,108; median: $100—evidence that small-value transfers drive much of the activity.
- Globally, $54B in net outflows from North America show that stablecoins are now meeting global dollar demand, especially when local currencies weaken.
- The March 2023 U.S. banking crisis sharply disrupted flows from North America, exposing how closely crypto rails depend on traditional banks.
Why it matters for Africa: The data confirms what’s visible on the ground. Africans are using stablecoins as a digital dollar lifeline—for remittances, trade and inflation protection but it also signals new dependencies. As access to exchanges and off-ramps shapes who can move money, Africa’s financial future may hinge as much on crypto connectivity as on banking reform.
Here’s a quick rundown of African countries that have begun regulating virtual assets.
Enacted frameworks
- Mauritius: Full regime for virtual assets and token issuers under the Virtual Asset and Initial Token Offering Services Act, with licensing by the Financial Services Commission (covers stablecoin issuers too) (Charlton's Quantum, Zitadelleag).
- Botswana: Virtual Assets Act, 2022, in force; licensing of Virtual Asset Service Providers (VASP) under the Non-Bank Financial Institutions Regulatory Authority (Botswana Laws, Webber Wentzel).
- Namibia: Virtual Assets Act, 2023 in force with detailed rules (custody, capital, disclosure, cybersecurity). Bank of Namibia is the regulator (Afriwise, Bowmans Law).
New or near-final laws
- Kenya: The parliament passed the Virtual Asset Service Providers Bill in October 2025. It creates licensing for exchanges under the Capital Markets Authority (CMA) and assigns stablecoin licensing to the Central Bank (awaiting presidential assent) (Reuters, Parliament of Kenya).
- Rwanda: In March 2025, the National Bank of Rwanda and the CMA introduced a draft framework for virtual assets and VASPs (The New Times).
- Morocco: A nationwide ban remains but Bank Al-Maghrib has prepared a draft crypto law now moving through adoption; Central Bank Digital Currency work is also underway (Reuters).
Exploring or signaling next steps
- Ethiopia: Crypto remains illegal for payments but the National Bank of Ethiopia and Financial Intelligence Service are developing a framework to regulate virtual assets and VASPs as part of new anti-money laundering reforms (AI Invest).
- Ghana: The Bank of Ghana required VASPs operating in the country to register by August 15, 2025, ahead of the planned VASP Act expected later this year (Bank of Ghana).
- Zambia: Authorities have flagged a forthcoming framework; public materials note draft work on crypto and stablecoins for stakeholder review in 2025 (ZamBanker).
Still prohibitive
- Egypt: Trading and promotion require a Central Bank of Egypt license, which has not been issued; effectively, a prohibition remains in place (ICLG Business Reports).
And for those still asking, “how do the flows actually work?”:
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