In January, Africa led the world in the size of spreads for converting stablecoins into fiat currencies, according to data from Borderless.
The median rate difference in the region was 299 basis points (approximately 3%). In Latin America, this figure was 1.3%, while in Asia it was just 0.07%.
The cost of transactions within the continent varies significantly. In South Africa, conversion costs around 1.5%, whereas in Botswana it reached 19.5%.
Analysts attributed this disparity to the level of competition and liquidity in local markets:
- In countries with multiple providers, fees range from 1.5% to 4%.
- In markets with a single operator, user expenses often exceed 13%.
Botswana recorded the worst result in January (19.4%), with high costs also noted in Congo (>13%). In South Africa, where the currency market is more developed, conditions were more favorable.
The study also compared stablecoin rates with the traditional interbank market. Globally, the difference is a minimal 0.05%. However, in Africa, this gap reaches 1.19%.
Analysts highlighted the complete fragmentation of the African market. There is virtually no correlation between the exchange rates of national currencies. Each of the 13 countries in the study shows its own dynamics, dependent on local conditions rather than continental trends.
Back in September 2025, leaders of Africa Bitcoin Corporation stated that Bitcoin would solve key problems of the African continent—devaluation and inflation.