Digital Dollar enters African payment systems

Payments gateway Onafriq is partnering with stablecoin issuer Circle to introduce the USD Coin (USDC) into African payment infrastructure. The move aims to lower the cost and complexity of cross-border payments while expanding access to digital financial services.

USDC is a type of cryptocurrency known as a stablecoin. Issued by the private company Circle, it is backed by dollar-denominated reserves and designed to maintain a value close to one US dollar. Unlike central bank digital currencies, USDC is not issued by a government and operates on public blockchain networks.

The collaboration aims to introduce stablecoins and blockchain infrastructure into African payment networks in a compliant manner, supporting real-world financial applications.

Stablecoins account for 43% of all cryptocurrency transactions in Africa, reflecting their growing role in the region’s digital economy. Their adoption has been driven in part by economic challenges such as currency devaluation, high remittance fees, and limited access to traditional financial services.

Currently, over 80% of intra-African payments are routed through correspondent banks outside the continent and settled in foreign currencies such as the US dollar or Euro. This results in US$5-billion in transaction fees annually and undermines economic integration efforts.

Onafriq and Circle are working together to change this paradigm by piloting the use of USDC-powered settlement solutions into Onafriq’s network, which connects over 500 wallets and 200 million bank accounts in more than 40 African markets.

“Our partnership with Circle is an important milestone, reinforcing Onafriq’s commitment to harnessing technology to remove complexity from cross-border payments,” says Dare Okoudjou, founder and CEO of Onafriq.

“By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust. This collaboration underscores our vision to democratise access to payments and drive financial inclusion across the globe. We’re not just envisioning the future of payments – we’re actively building it.”

Miriam Kiwan, VP of Circle for Middle East and Africa, says: “The emerging markets that Onafriq serves holds tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments.

“Our partnership with Onafriq aligns perfectly with Circle’s mission to promote financial inclusion and improve efficiency in areas where traditional banking has often been costly and inaccessible. Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity.”

The collaboration aims to support the development of a more inclusive and self-sustaining pan-African financial system. It reflects a broader move toward modernising payment infrastructure through the responsible application of blockchain technology, in coordination with regulators and financial institutions, to improve efficiency and accessibility across the continent.