Stablecoin ownership has expanded rapidly in Africa’s largest economies, Nigeria and South Africa, with users expressing strong optimism about their future use, Reuters reported. Many also called for stablecoins to become more widely accepted as a means of payment.

The findings come from the Stablecoin Utility Report, a survey conducted by YouGov in collaboration with crypto firms BVNK, Coinbase, and Artemis. The survey collected responses from more than 4,650 individuals across 15 countries who either currently hold, or plan to hold, stablecoins or other cryptocurrencies.

Usage remains largely focused on cryptocurrency markets, with nearly nine-tenths of stablecoin transactions linked to trading. Only six percent of transactions were reportedly used for paying for goods or services, according to a Boston Consulting Group report published last year.

Despite this, the survey revealed rising demand for stablecoins in other emerging markets such as India. Over half of respondents globally increased their stablecoin holdings in the past year, with developing economies showing the strongest growth trends. In Nigeria and South Africa, almost 80 percent of respondents already held stablecoins, and over 75 percent of these users intend to expand their holdings further in the coming year.

Interest is also strong among those who do not yet own stablecoins. In low- and middle-income economies, the intention to begin holding them was roughly double that of high-income economies. In Nigeria, 95 percent of respondents expressed a preference to receive payments in stablecoins rather than the Naira.

While stablecoins offer faster and cheaper ways to transfer money in developing countries, most, including the dominant Tether and USDC, are pegged to the US dollar. This raises potential concerns over economic dollarisation and capital flight.