By Prince Osuagwu, Hi-Tech Editor

The digital money ecosystem is maturing rapidly. The momentum started building from the adoption of blockchain technologies and digital assets, particularly Stablecoins by many countries in Africa.

  Some of the regulatory moves, particularly by the Central Bank of Nigeria, CBN, should also claim some credits for this development. Another factor    driving the growth included a growing number of use cases, particularly those using USD Stablecoins to make cross-border payments.

Most users confessed that it is less costly and more efficient, gaining access to U.S. hedging against currency volatility, while it can also serve as an asset class for investment.

Some of the use cases are driving adoption of Stablecoins across the emerging world, particularly in Sub-Saharan Africa. The region has the world’s highest rate of Stablecoin adoption at 9.3%.

Following this lead, one of Africa’s leading licensed stablecoin payment orchestrators, Yellow Card, recently released a report: “2025 Report on the State of Digital Assets Regulation in Africa”.

The report touted to be the continent’s most comprehensive analysis of digital asset regulatory frameworks, said with over 54 million digital asset users across Africa and the fact Sub-Saharan Africa is leading the world in stablecoin adoption at 9.3%, there are possibilities of Africa’s    regulatory methods getting huge attraction and the attention of most developed economies.

According to the report, Nigeria ranks top, globally, in stablecoin adoption and second in overall digital asset usage, with 25.9 million users. That represents 11.9% penetration rate. The feat places the country at the epicenter of Africa’s digital asset movement, driven by the need to hedge against naira volatility, access USD-denominated value, and streamline cross-border transactions.

Yellow Card’s General Counsel and one of the authors of the Report, Craig Stoehr, said: “We’re seeing real momentum from both regulators and innovators, a clear signal that digital assets are no longer fringe, but foundational”   

The report said some of Nigeria’s significant regulatory developments that gave the country the edge included that of the Securities and Exchange Commission (SEC). Recall that SEC now officially regulates digital assets as securities, cemented by amendments to the Investments and Securities Act (ISA) 2024.

Also, the CBN’s relaxation of its previous stance on VASPs, issuing guidelines for banking relationships with crypto firms in late 2023, was hailed as part of the magic.

Programs like the Accelerated Regulatory Incubation Program (ARIP) were also part of the onboarding platforms into formal regulatory structures the report said solidified Nigeria’s regulatory framework on digital assets.

Stoehr said these moves signal an ecosystem maturing rapidly, with growing clarity, oversight, and legitimacy.

“Stablecoins are proving transformative for Nigerian individuals and businesses alike. Beyond personal savings and remittances, more companies are now accepting digital assets for payments, unlocking faster transactions and deeper access to foreign currency-denominated tools, all of which fuel economic innovation and financial inclusion” he added.

The report also highlights regional trends, including the rise of Central Bank Digital Currencies (CBDCs), increased AML/CFT compliance, and how other African countries like Kenya, Ghana, and South Africa are developing their frameworks.