In January, Africa emerged as the leader in spread sizes for converting stablecoins into fiat currencies, according to data from Borderless.
The median exchange rate difference in the region was 299 basis points (about 3%). In Latin America, this figure was 1.3%, while in Asia, it was just 0.07%.
Transaction costs within the continent vary significantly. In South Africa, conversion costs around 1.5%, whereas in Botswana, the rate reached 19.5%.
Analysts attributed this disparity to the levels 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 costs often exceed 13%.
Botswana recorded the highest rate in January (19.4%), with similarly high costs 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 traditional interbank markets. On average worldwide, 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 exhibits its own dynamics, influenced by local conditions rather than continental trends.
As a reminder, in September 2025, leaders of Africa Bitcoin Corporation stated that Bitcoin could address key issues facing the African continent—devaluation and inflation.