Stablecoins help people in emerging markets by providing a stable way to store and use money, especially where banks are not easily available. In Sub-Saharan Africa, they account for about 43% of cryptocurrency transactions. Bilal Khaled, Director of Trading at D24 Fintech Group, says better technology and education are needed to help more people use stablecoins safely.
The increasing adoption of stablecoins is reshaping financial access in emerging markets, offering a reliable source of funds amid currency devaluations and market volatility. According to D24 Fintech Group, a fintech solutions provider, stablecoins play a crucial role in expanding financial inclusion, particularly in regions with limited access to traditional banking.
Stablecoins are digital assets pegged to stable currencies or commodities, ensuring lower volatility compared to other cryptocurrencies. In many underserved regions, they provide an alternative financial solution where access to traditional banking is either limited or unreliable.
Sub-Saharan Africa exemplifies this trend, with stablecoins contributing to approximately 43% of cryptocurrency transactions in the region. This shift highlights the increasing preference for stable digital assets over fluctuating national currencies. Exchange rate instability in several African economies has further driven individuals and businesses to seek alternative financial instruments, bolstering stablecoin adoption.
Building the infrastructure for stablecoin growth
D24 Fintech Group underscores the need for robust technological development to facilitate the widespread adoption of stablecoins. According to Bilal Khaled, Director of Trading at D24 Fintech Group, enhancing financial infrastructure will not only improve consumer choice but also enable more secure and seamless transactions.
Bilal Khaled states: “The role of stablecoins varies greatly when considering the financial needs of regions that differ in economic development. For the world’s financial powerhouses, this sector of cryptocurrency represents a dependable investment opportunity, a deregulated source of finance, and even a gateway into more advanced forms of entertainment.
“While all these use cases still apply in emerging economies, the key difference is that stablecoins have risen to prominence as a reliable source of alternative finance, capable of solving structural issues that have hindered growth for decades. This is driven by a lack of access to traditional finance, with the unbanked population in areas such as Sub-Saharan Africa far exceeding the volume of people experiencing financial exclusion in more economically stable regions.”
To support the expansion of stablecoin use, Bilal emphasises the importance of developing digital infrastructure and ensuring widespread technological access. He points out that users must have the necessary tools to view, move, and invest their funds seamlessly. Without adequate platforms and applications tailored to the needs of emerging markets, stablecoins cannot achieve their full potential in promoting financial inclusion.
Education as a key driver of adoption
Beyond technological advancements, education plays a critical role in ensuring stablecoin adoption is both effective and secure. Bilal Khaled stresses that individuals must be equipped with the knowledge required to engage with the cryptocurrency market confidently.
“Stablecoins cannot accelerate financial inclusion if the individuals that stand to benefit from these funds aren’t equipped to enter the cryptocurrency market. To solve this issue, governments and developers must work together to build exchanges that serve the needs of this specific set of consumers while ensuring they have the necessary technology at hand to view, move, and invest their money,” Bilal Khaled explains.
He further highlights that education efforts should cover the benefits of stablecoins, investment pathways, and safe trading practices. As with any financial instrument, risks exist, making it necessary for individuals to be well-informed about best practices in cryptocurrency trading.
“There’s little purpose in developing the infrastructure for stablecoins if users are unsure how they work. Therefore, we must work to educate consumers, conveying both the benefits of stablecoins and the pathways to leveraging this source of finance. As with any investment, there is an element of risk, so education should also encompass rules for safe trading and a generic set of guidelines for individuals to follow.”
A call for industry collaboration
For stablecoins to fulfil their potential as a tool for financial inclusion, industry stakeholders must collaborate to create an enabling environment. Bilal Khaled asserts that cooperation between governments, fintech developers, and financial institutions is essential in ensuring stablecoin accessibility for those in need.
“In a volatile global market where currency devaluations and financial exclusion severely impact consumer autonomy and security, exploring alternative methods to empower underserved communities is essential. Stablecoins represent a significant opportunity to increase financial development, but this is not possible without the commitment to enabling widespread access from governments, exchanges, and tech developers.”
About D24 Fintech Group
D24 Fintech Group is a fintech company focused on developing and managing innovative technological solutions for the digital finance ecosystem. Through its affiliates, the company operates in over 100 countries, offering integrated solutions designed to enhance transactional security, streamline digital payments, and improve operational efficiency.
By leveraging emerging technologies, D24 Fintech Group develops advanced platforms and financial management tools while supporting the growth of the fintech industry through incubation services and technological innovations. The company aims to redefine industry standards and drive the adoption of digital finance solutions worldwide.
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