"Small currencies, forex-trapped countries" is practically a synonym for African nations. For businesses planning to enter the African market, the complexity of the local financial environment—banking system limitations, exchange rate volatility, and regulatory uncertainty—is often daunting. These obstacles not only hinder daily operations but also deter potential investors. As a result, finding alternatives has become a necessity. In recent years, blockchain-based crypto payment channels have been increasingly adopted by businesses.

While stablecoins perfectly embody blockchain's core capability of "instantaneous transfer of funds and value," payments go far beyond just "peer-to-peer transfers." Like in a stablecoin sandwich, although blockchain replaces the horizontal value/fund transfer of traditional payment channels, the top and bottom layers still rely on outdated financial payment systems, ultimately returning to the target country's banking and financial account framework.

Thus, crypto over-the-counter (OTC) trading has become a core component for stablecoin payment companies, especially for these African "small currencies, forex-trapped countries." The lack of local financial infrastructure and the inefficacy of traditional channels have spurred the rapid growth of the crypto OTC market, whose efficient deposit/withdrawal services enable businesses to safely and quickly move funds between fiat and stablecoins.

As Africa and the world accelerate their embrace of digital innovation, crypto/stablecoin payment channels provide businesses with opportunities to expand in a rapidly changing market.

The rise of cryptocurrency in Africa mirrors the global evolution of fintech and digital currencies, closely tied to the mobile phone revolution that swept the continent in the early 21st century. Over the past three decades, the rapid adoption of mobile and internet technologies has laid the foundation for digital transformation across industries. This shift, driven by young, tech-savvy populations, has also created fertile ground for blockchain—the underlying technology of cryptocurrency—to take root.

In Africa, where over 60% of the population remains unbanked, blockchain has gained rapid traction in finance, offering fast, low-barrier solutions for cross-border payments and digital asset transactions.

Initially, people embraced crypto assets as a hedge against inflation and capital controls, using them as personal stores of value and corporate payment channels. Today, this trend continues to deepen: OTC crypto trading provides global businesses with seamless fund flows, bypassing the hurdles of traditional banking systems—such as forex volatility, settlement delays, and complex cross-border compliance. With the growing adoption of Bitcoin, Ethereum, Tether, and other stablecoins, African businesses now view crypto not just as a tool but as a reliable, fast, and transparent financial infrastructure capable of replacing outdated traditional systems.

1.1 The Evolution of Cryptocurrency in Africa

The decentralized, unregulated nature of cryptocurrencies is seen as a potential threat to fiat currencies, undermining the functions of monetary authorities. Governments also worry about digital assets being used for unregulated illicit transactions. In many African countries, central banks and financial regulators initially responded with caution. As a result, Nigeria, Tunisia, Egypt, Lesotho, Algeria, and others banned cryptocurrencies in formal transactions. However, due to their decentralized nature, no single government can completely ban crypto, and underground trading remains active.

As major global economies (e.g., the UK, US, Canada) began legislating and gradually accepting cryptocurrencies and digital assets, more multinational corporations—such as Microsoft, Tesla, PayPal, and KFC—started accepting Bitcoin and other cryptocurrencies as payment.

This global acceptance gradually permeated Africa, strengthening local users' belief that "cryptocurrency is the future of money." As trading volumes grew, some African countries began relaxing bans—Nigeria, Tunisia, Senegal, Sierra Leone, Ghana—or exploring central bank digital currencies (CBDCs) as regulated alternatives, including Nigeria, Egypt, Morocco, Algeria, and Kenya. In April 2022, the Central African Republic (CAR) went further by passing a bill to recognize Bitcoin as legal tender alongside the CFA franc. However, the bill was later suspended pending approval from the Bank of Central African States (BEAC). In February 2025, CAR launched a meme coin.

1.2 Cryptocurrency in Africa's Business Landscape

Today, as more governments seek to tap into crypto's vast potential—value creation, smart transactions, tax revenue—Africa's crypto ecosystem continues to evolve. Yet, like elsewhere, African businesses are "leading the charge," taking proactive steps.

Although Sub-Saharan Africa (SSA) accounts for only $4.8 trillion in crypto trading volume (2.7% of global transactions, compared to MENA's 7.5%), local businesses are using crypto for daily payments, inflation hedging, and more frequent, smaller (retail-level) transfers. According to Chainalysis' 2024 Global Crypto Geography Report, stablecoins now make up 43% of SSA's trading volume, with Nigeria ranking second globally in crypto adoption (after India). Ethiopia (26th), Kenya (28th), and South Africa (30th) also made the top 30.

The report also shows SSA leading in decentralized finance (DeFi) adoption, partly due to the region's urgent need for "accessible financial services." World Bank data shows that only 49% of adults had bank accounts as of 2021. Businesses also use stablecoins to hedge forex risks.

Facing this trend, African central banks remain cautious but keep a "policy observation window" open, preserving potential compliance pathways for crypto assets.

The 2020 COVID-19 pandemic, the 2021 Russia-Ukraine conflict, and regional integration efforts have all been pivotal in Africa's crypto adoption. The African Union's High-Level Panel on Emerging Technologies (APET) encourages alternative payment methods like blockchain and crypto to facilitate cross-border transactions, enhance financial inclusion, and reduce transaction costs.