How stablecoins are empowering informal markets and driving financial inclusion in Africa

Stephen Grootes speaks to Steven Boykey Sidley, Director at Bridge Capital Future Advisory and Professor of Practice at the Johannesburg Business School, about how stablecoins are driving financial inclusion across Africa. 

Listen to the interview in the audio player below.

What is a stablecoin, you ask?

A stablecoin is any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm.

Unlike speculative crypto products, stablecoins such are designed for stability, pegged to the US dollar, and increasingly regulated across multiple jurisdictions.

It therefore offers a faster and, often safer alternative to conventional banking.

People working in the informal sector often wait days to receive international payments, while immigrants also have to pay exorbitant fees to send money home. Small businesses also struggle to operate digitally or access credit.

But as digital currencies are increasingly used in Africa, it opens the door for users to earn dollarised income with a virtual bank account, and even send funds home using stablecoins.

Speaking to Stephen Grootes on The Money Show, Steven Boykey Sidley, Director at Bridge Capital Future Advisory and Professor of Practice at the Johannesburg Business School says stablecoins are the biggest story in cryptocurrencies right now.

"It's not only that it allows people to send money quickly, and almost without costs to other people, it's that they cans send it quickly...but you can also send it 100% safely."

- Steven Boykey Sidley, Director - Bridge Capital Future Advisory

"There is a South African stablecoin called Zarp, which has suddenly become big news in South Africa..."

- Steven Boykey Sidley, Director - Bridge Capital Future Advisory

"There are banks who are now building stablecoins....the biggest companies in the world are now all issuing their own stablecoins, so there will be a plethora of these things..."

- Steven Boykey Sidley, Director - Bridge Capital Future Advisory

Scroll to the top of the article to listen to the full interview.