{"id":72076,"date":"2026-02-12T08:31:32","date_gmt":"2026-02-12T08:31:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=72076"},"modified":"2026-02-12T08:31:32","modified_gmt":"2026-02-12T08:31:32","slug":"stablecoins-see-largest-conversion-spreads-in-africa-research-shows","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=72076","title":{"rendered":"Stablecoins See Largest Conversion Spreads In Africa, Research Shows"},"content":{"rendered":"
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Africa\u2019s promise of cheaper remittances via stablecoins is clashing with reality in many places. According to data<\/a> from Borderless.xyz, January\u2019s median spread for stablecoin-to-fiat conversions across Africa reached nearly 300 basis points \u2014 about 3% \u2014 far higher than Latin America\u2019s roughly 1.3% and Asia\u2019s tiny 0.07%. That gap matters. It hits wallets where people send money home.<\/p>\n

Conversion Costs Vary By Market<\/h2>\n

Reports note huge differences inside the continent. South Africa showed one of the lowest conversion costs at about 1.5%, where several providers compete and markets have deeper liquidity.<\/p>\n

At the other extreme, Botswana\u2019s median spread climbed to almost 19.4% in January, although pricing eased later that month. Congo also saw conversion levels above 13%. The dataset covered 66 currency corridors and nearly 94,000 rate observations, so these are not isolated blips.<\/p>\n

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Competition And Liquidity Shape Rates<\/h2>\n

The numbers point to a simple takeaway: who sits between the stablecoin<\/a> and the local cash matters. Where multiple payment providers operate, conversion costs generally sit between about 1.5% and 4%.<\/p>\n

Where a single outfit dominates, spreads can top 13%. The \u201cspread\u201d here is the gap between what a provider will buy and sell a stablecoin for \u2014 like a bid-ask gap in traditional markets \u2014 and it is the execution cost a sender ultimately pays.<\/p>\n

Based on reports, it appears these frictions come from local market structure and liquidity more than from the underlying blockchain tech.<\/p>\n

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Stablecoins Compared With Traditional FX<\/p>\n

Borderless.xyz<\/a> also measured how stablecoin mid-rates stack up against interbank FX mid-market rates, a metric the company calls the TradFi premium.<\/p>\n

Across 33 currencies globally, the median difference was about five basis points, or 0.05%, meaning stablecoins and traditional mid-market rates were largely aligned in many places.<\/p>\n

In Africa, however, the median gap widened to close to 120 basis points, or about 1.2%. That larger premium helps explain why stablecoins do not automatically translate into big savings for every corridor.<\/p>\n

<\/p>\n

What This Means For Senders And Markets<\/p>\n

Economists say stablecoins are cutting remittance costs in Africa, noting that legacy services often charge around $6 for every $100 sent.<\/p>\n

The recent data adds nuance: faster settlement and lower fees are possible, but only when local on-ramps and off-ramps work well. For consumers, that means potential savings in some corridors and frustratingly high costs in others.<\/p>\n

For regulators and market entrants, the signal is clear \u2014 boosting competition and liquidity at the local level is as important as improving cross-border rails.<\/p>\n

Stablecoins have opened a route that can be cheaper and quicker. Yet in practice, the last mile \u2014 turning crypto into local money \u2014 still depends on local players, pricing models, and market depth.<\/p>\n

Featured image from andBeyond, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Africa\u2019s promise of cheaper remittances via stablecoins is clashing with reality in many places. According to data from Borderless.xyz, January\u2019s median spread for stablecoin-to-fiat conversions across Africa reached nearly 300 basis points \u2014 about 3% \u2014 far higher than Latin America\u2019s roughly 1.3% and Asia\u2019s tiny 0.07%. That gap matters. It hits wallets where people […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-72076","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/72076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=72076"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/72076\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=72076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=72076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=72076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}