Stablecoins Without Dollarisation: Africa’s Path Forward with the US GENIUS Act
On July 17, 2025, a landmark piece of legislation was enacted in Washington, potentially set to redefine Africa’s financial landscape. The US GENIUS Act, the first national law specifically addressing stablecoins, mandates stringent requirements for issuers, including dollar-for-dollar reserve backing, monthly audit publications, and guaranteed first claim on assets for users during a crisis. While designed for America’s fintech sector, the core principles of this Act offer a powerful blueprint for securing and scaling Africa’s burgeoning $1.1 trillion mobile money economy, allowing the continent to embrace digital currencies with robust regulatory clarity, rather than direct dollarisation.
The Blueprint for Africa’s Digital Economy
Africa’s digital financial infrastructure is already a dynamic force. The continent’s fintech ecosystem sees daily operations powered by digital rails that are well established. In 2024 alone, Sub-Saharan Africa processed an astonishing $1.1 trillion to $1.4 trillion in mobile money transactions, demonstrating how real-time digital cash seamlessly facilitates financial activities for households and small businesses. However, the continent faces significant challenges, particularly the high cost of cross-border money transfers, with average remittance fees climbing to 6.49% in Q1 2025. This burden makes efficient, low-cost digital alternatives crucial. The growing adoption of stablecoins, evidenced by Nigerians trading nearly $22 billion in stablecoins between July 2023 and June 2024, highlights a clear demand for more affordable and efficient payment solutions. The GENIUS Act’s emphasis on full reserve backing, transparent audits, and strong user protections provides a robust regulatory model that African nations can adapt. By implementing similar stringent frameworks, Africa can foster trust and stability in its own stablecoin initiatives, potentially backed by local currencies or baskets of assets, thereby driving financial inclusion and reducing transaction costs without necessarily tying its economic future to the US dollar.
Leveraging the regulatory clarity and consumer protections offered by the GENIUS Act’s framework, Africa has an unprecedented opportunity to fortify its mobile money ecosystem. This approach promises to cultivate a secure, efficient, and cost-effective digital financial environment across the continent. By adopting robust standards for stablecoin issuance and operation, African nations can significantly reduce the high “taxes” on cross-border payments, leapfrogging traditional financial hurdles. This strategic move empowers Africa to drive its own digital transformation, fostering economic growth and greater financial inclusion, built on a foundation of trust and innovation, not dollarisation.
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