Ripple Executive: “Stablecoins Will Completely Transform Africa’s Financial Market”

▲ Africa, stablecoins, digital assets, blockchain/AI-generated image

Reece Merrick, Managing Director for the Middle East and Africa at Ripple, projected that stablecoins will fundamentally transform Africa’s fintech market structure and dramatically reduce cross-border payment costs.

According to crypto-focused media outlet U.Today on February 25 (local time), Merrick recently assessed that the role of stablecoins within Africa’s fintech ecosystem is expanding rapidly. He identified stablecoins as the optimal tool to address the continent’s complex currency systems and high remittance fees. As stablecoins enable the development of fast and low-cost payment infrastructure that traditional financial systems have failed to provide, they are expected to serve as a catalyst for revitalizing local economies.

The African market currently suffers economic losses due to excessive cross-border remittance fees averaging 8% to 10% and settlement delays that can take several days. Merrick pointed out that such inefficiencies hinder intra-regional trade and reduce financial accessibility for individual investors and businesses. By leveraging blockchain technology and minimizing intermediaries, stablecoins offer the advantage of near real-time transfer speeds and cost reductions of more than 90% compared to existing systems.

In particular, in African countries facing severe inflation, U.S. dollar-pegged stablecoins are highly favored as safe assets for preserving value. Merrick explained that amid the high volatility of local fiat currencies, demand for digital assets that maintain stable value is a key driver of fintech innovation. This demand is likely to expand beyond payment methods into a broad range of financial services, including savings and investment.

Ripple continues efforts to integrate financially underserved populations in Africa into the formal financial system through the XRP Ledger and its new stablecoin, RLUSD. Real-time payment solutions utilizing XRP already play a crucial role in providing liquidity in several regions, while RLUSD, designed with stronger regulatory compliance, is focused on gaining institutional trust. Merrick expressed confidence that Ripple’s infrastructure, in collaboration with banks and fintech companies across Africa, will help form a vast digital economic zone.

With the adoption of stablecoins, Africa’s fintech market is exhibiting a leapfrogging phenomenon, bypassing traditional financial stages and moving directly into the digital finance era. As governments and regulators establish legal frameworks that accommodate innovation, the pace of stablecoin adoption is expected to accelerate further. Africa’s potential as a global financial hub is now entering a phase where stablecoins can translate that potential into tangible economic growth.

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