Africa Tops Global Stablecoin Costs, Exposing High Conversion Barriers
Stablecoin users in Africa face the highest conversion costs globally when exchanging digital assets for local fiat currencies. Data spanning 66 corridors and 33 currencies reveals stark disparities, with South Africa at 152 basis points (bps) and Botswana soaring to 1,944 bps—a 13-fold difference within the same region.
Provider competition emerges as a critical cost determinant. Markets with multiple digital asset providers exhibit spreads of 150–410 bps, while monopolized corridors exceed 1,300 bps, creating steep entry barriers for users navigating between stablecoins and fiat.