Onafriq Partners with Circle to Pilot USDC Stablecoin in Africa

Key Takeaways

* Onafriq, a leading payments infrastructure provider in Africa, is joining forces with Circle, the company behind USDC, to revolutionize cross-border payment systems across the continent.

* A pilot program will see USDC being used for settlements within Onafriq’s expansive network, which spans over 40 African countries and connects more than 500 million mobile wallets and 200 million bank accounts.

* This partnership aims to address the high costs and inefficiencies that come with intra-African payments, which are typically routed through foreign correspondent banks and settled in foreign currencies. The existing system generates around $5 billion annually in transaction fees.

* By exploring blockchain-based settlement solutions, Circle and Onafriq hope to provide faster and more affordable alternatives for institutions and individuals.

* Executives from both companies highlight the potential of blockchain technology to enhance financial access and system efficiency, particularly in a region where a billion people are still unbanked.

* Onafriq CEO Dare Okoudjou stated that the partnership aims to make cross-border transactions easier and cheaper, ultimately boosting trust in digital payments.

* Miriam Kiwan, VP at Circle for the Middle East and Africa, noted that many African markets are ideal candidates for stablecoins, especially in areas underserved by traditional banking.

* The project plans to engage closely with regulators and financial institutions to help modernize Africa’s payment infrastructure.

* This partnership reflects the growing efforts by both companies to bring digital currencies into real-world use, adapting to local and international standards.

Joining Tether

Another major player in the stablecoin space, Tether, has also been investing in Africa’s fintech scene.

While traditional banks often shy away from riskier, lower-return markets, Tether has taken a more hands-on approach by directly investing in infrastructure across the continent.

The company has already deployed over 300 solar-powered kiosks in countries like Nigeria, Kenya, and Mozambique, targeting regions where 600 million people still lack reliable electricity.

These kiosks, equipped with solar panels and rechargeable batteries, allow users to exchange power packs for 3 USDT and serve as digital dollar access points for those without proper banking services.

In a move highlighting the interconnectedness of financial and energy gaps, Ardoino noted that in many areas, people may have better mobile phone service than running water or electricity.

With a focus on the potential of mobile phones and technology for financial inclusion, Tether aims to scale to 10,000 kiosks by 2026 and 100,000 by 2030, potentially reaching up to 60 million people.

Unlike traditional NGOs, which Ardoino criticizes for administrative overhead and less efficient spending, Tether’s approach focuses on investing directly in the technology and infrastructure needed to provide financial services in a sustainable manner.

Each kiosk also serves as a community hub, offering local residents online access for booking transport, buying food, paying bills, and other essential goods and services, helping to stimulate the surrounding economies.