KBC Channel 1

Tag: stablecoins

  • Kenya urged to consider stablecoin use amid regulatory debate 

    Kenya urged to consider stablecoin use amid regulatory debate 

    Stablecoins could transform cross-border payments in Africa as stakeholders argue that regulators must strike a balance between innovation and compliance.

    At the fourth edition of the Kenya Blockchain and Crypto Conference held in Nairobi backers of stablecoin engaged in practical use of stablecoins in reducing the cost and delays associated with cross-border transactions.

    “One of the issues we’ve been grappling with, especially as far as cross-border payments are concerned, is how expensive, unreliable and slow it is to move money. Sometimes it can take up to two weeks. That is what we hope stablecoins can solve,” said Sheila Waswa, Chasing Mavericks Chiefe Executive Officer.

    Industry executives attending the conference argued that blockchain-based payment systems are already proving effective for businesses operating across multiple markets.

    Luno Country Manager for Kenya Apollo Sande said stablecoins are increasingly being used for remittances, treasury management and international settlements, though adoption remains at an early stage.

    “As far as cross-border payments are concerned, we’ve always depended on systems with multiple hops that take fees along the way and settle after two to three days. Stablecoins can address that, but there’s still a significant knowledge gap and provider competence gap,” he added.

    He noted that many businesses, especially manufacturers and importers, are still unfamiliar with how blockchain-based payment rails can be integrated compliantly into their operations.

    Similarly, Kevin Kegima of YogoPay described stablecoins as “the next level” in helping SMEs and large enterprises improve payment efficiency across Africa, Asia, Europe and the United States.

    YogoPay, a cross-border payments platform, uses both fiat currencies and stablecoins to facilitate business transactions across multiple corridors, including China, Nigeria, Ghana, Kenya, Tanzania and Uganda.

    The conference also highlighted Kenya’s ambition to become a continental hub for blockchain innovation.

    The Nairobi International Financial Centre Authority CEO Daniel Mainda noted that the government is finalizing regulations for virtual asset service providers in collaboration with the Central Bank of Kenya and the Capital Markets Authority.

    “We want Nairobi to become the home of technology and startups in the continent,” said Mainda.

    “The regulations must create a level playing field while ensuring we attract the best players into the market.”

    Stakeholders at the conference expressed optimism that clear regulation, combined with industry collaboration, could accelerate mainstream adoption of blockchain-based payments across Africa.

    The conference brought together regulators, banks, fintech firms, blockchain startups and payment providers to discuss how digital assets can solve inefficiencies in remittances and international trade.

  • Africa Stablecoin Summit showcases the future of digital money in Africa

    Africa Stablecoin Summit showcases the future of digital money in Africa

    The inaugural edition of the Africa Stablecoin Summit 2025 brought together more than 300 high-level leaders from across Africa and beyond to explore how stablecoins can strengthen the continent’s financial systems, trade, and economic resilience.

    The two-day summit, themed “Harnessing Stablecoins for Africa’s Economic Resilience,” convened central banks, regulators, commercial banks, fintech innovators, stablecoin issuers, development partners, and blockchain infrastructure firms.

    Attendees included representatives from the governments and central banks of Kenya, Ghana, Nigeria, Uganda, Zambia, and South Africa, alongside delegates from the United Nations, Pan-African Payment and Settlement System (PAPSS), the International Monetary Fund (IMF), and other leading ecosystem stakeholders.

    Recent data underscores the fast-growing role of stablecoins in Africa’s digital economy. Stablecoins accounted for 43% of crypto transaction volume in Sub-Saharan Africa in 2024, according to an industry report by Yellow Card, with Nigeria; the continent’s largest stablecoin market, recording nearly USD 22 billion in transactions between July 2023 and June 2024.

    A blog by the Center for Global Development further notes that stablecoins already represent about 6.7% of GDP in Africa and the Middle East in terms of international stablecoin flows in 2024.

    With over USD 300 billion in stablecoin transactions estimated to be flowing through African markets annually, the summit spotlighted their transformative potential in addressing currency volatility, fragmented payment systems, and high remittance costs.

    The agenda featured keynotes from global and African financial leaders, including Larry Cooke (Africa Head of Legal, Binance), who officially opened the summit, alongside Saruni Maina, (Regional Operations Lead – Africa), Shahebaz Khan (Senior Vice President, Head of Commercial and Money Movement Solutions, VISA CEMEA), and Hon. Kimani Kuria (Chairperson, Finance and National Planning Committee, Kenya National Assembly)

    Sessions covered regulation, interoperability, infrastructure, and real-world adoption across fintech and enterprise.

    Larry Cooke, Africa Head of Legal, Binance, “Stablecoins are more than a technological innovation—they are a pathway to inclusive, cross-border financial systems that can empower businesses and individuals across Africa. At Binance, we are committed to fostering responsible innovation, collaborating with regulators, and investing in solutions that enable Africans to participate fully in the digital economy.”

    Shahebaz Khan Senior Vice President, Head of Commercial and Money Movement Solutions, CEMEA, VISA

    “Visa’s global network has long been the engine for how the world pays and gets paid. As money itself evolves, we’re extending that same trusted infrastructure to the next frontier: stablecoins. By pairing stablecoins with Visa’s world-class technology stack, we see tremendous potential to modernize global money movement – making payments faster, more accessible, and more secure for everyone. Whether it’s seamless remittances for consumers or enhanced liquidity for businesses, Visa is committed to bridging new digital currencies with our trusted network, turning innovation into everyday value.” Shahebaz Khan, Senior Vice President, Head of Commercial and Money Movement Solutions CEMEA at Visa

    Paul Neuner, CEO Telcoin, “The promise of stablecoin and what that could really mean to telecom, it is a message that we’ve been preaching for a long time, which is the internet of money where there’s just stablecoin floating and directly transacting from consumer to merchant, the telcos can play a very large role in running the internet of money just like they run the normal internet today”

  • Govt backs innovation as Kenya Digital Token launches

    Govt backs innovation as Kenya Digital Token launches

    Kenya has signaled a historic policy shift in embracing the digital economy with a strategic focus on Bitcoin, stablecoins, and blockchain integration.

    Through a series of statements and videos posted on X, Cabinet Secretary in the Ministry of Information, Communications and the Digital Economy (MICDE), William Kabogo announced the government’s intent to explore digital assets as a cornerstone of national economic transformation.

    “Kenya’s approach to digital assets is evolving from caution to leadership,” said Kabogo.

    “We are supporting blockchain innovation, stablecoin development, and exploring Bitcoin reserves,” he added.

    His remarks reflect a pivot in policy that seeks to position Kenya as a trailblazer in Africa’s Web3 future.

    While full regulatory rollouts are still pending, the CS emphasized that the announcement represents a decisive step toward embedding digital assets within the country’s economic framework and sovereign reserves.

    “Digital assets are the future of finance and Kenya cannot afford to be left behind,” he declared.

    He also noted that Kenya is developing a National Policy on Virtual Assets and a Virtual Asset Service Providers (VASP) Draft Bill, aimed at balancing innovation, financial inclusion, and public safety in the evolving digital landscape.

    Highlighting the depth of market engagement, Kabogo revealed that Kenyan citizens currently trade over $500 million in digital assets every month.

    “This demonstrates the immense potential in our country, as our people are already active participants in the digital economy,” he noted.

    The Cabinet Secretary stressed the importance of translating this digital activity into real-world socioeconomic gains such as job creation, investment attraction, and financial empowerment. “With blockchain, someone in any village can now access global markets, raise capital, or invest in tokenised assets,” he explained. “This technology breaks down traditional barriers and opens new pathways for prosperity.”

    MICDE has committed to working closely with innovators and stakeholders to develop policies that support responsible and inclusive digital development.

    On July 11, 2025, the ministry also welcomed a bold civic-led initiative the Kenya Digital Token (KDT) launched on the Solana blockchain.

    Though independently developed by private sector innovators, the government acknowledged that the token aligns closely with national goals of fostering identity, technological empowerment, and inclusive participation.

    “I welcome the launch of the Kenya Digital Token as a bold step by the private sector to expand the digital economy,” said Kabogo. “It reflects the growing confidence in tokenisation as a tool for value exchange, inclusion, and innovation.”

    While clarifying that the KDT is not a government-issued token, the Cabinet Secretary emphasized that it complements the country’s strategic digital direction.

    “It speaks directly to the heart of the Kenyan bottom-up economic transformation agenda, which empowers youth, drives economic dignity, and embraces technology to unlock opportunity,” he said.

    The token’s use of Solana chosen for its scalability and low transaction costs aligns with MICDE’s IBRL (Increase Bandwidth, Reduce Latency) policy vision, aimed at ensuring every Kenyan can participate seamlessly in the global digital economy.

    As Kenya advances its digital transformation agenda, the government is making it clear that it intends to lead with purpose, innovation, and inclusivity. With bold steps toward incorporating digital assets into policy, a proactive stance on blockchain regulation, and recognition of civic-led projects like KDT, the country is laying the groundwork for a resilient, future-facing economy.

    MICDE reaffirmed its commitment to continuous stakeholder engagement and regulatory clarity as Kenya carves its path in the global digital arena.

     

    Magame Luvai is a communication consultant.