# T. Oviosu, A. Henderson, E. Murungi, D. Nandwa, M. Murage: Cross-Border Payments l Africa/Week 2025 Source: https://www.youtube.com/watch?v=tpZrUzjuCqg Recap page: https://rapidrecap.app/video/tpZrUzjuCqg Generated: 2026-02-06T23:05:02.683+00:00 --- ## Quick Overview The discussion at Africa/Week 2025 focuses on the critical role of stablecoins in improving African financial infrastructure, highlighting their adoption for cross-border payments, the need for regulatory clarity that fosters innovation while protecting consumers, and the fact that local currency stablecoins are crucial for reducing FX risk and volatility in the region. **Key Points:** - Stablecoins are facilitating significant financial infrastructure development in Africa, with one speaker noting $12 trillion settled through them in the last half of the year. - Paga, a payments and financial services infrastructure business founded in Nigeria, uses stablecoins like USDC for cross-border settlement, enabling near-instant transfers to countries like Rwanda. - The key advantage of stablecoins for Africa is reducing friction and volatility associated with local currency fluctuations and FX risk, especially for cross-border remittances and B2B transactions. - Regulatory clarity is necessary but is currently fragmented across African markets, leading to an environment where regulators are playing catch-up, as seen by the US 'Clarity for Payment Stablecoins Act' discussion. - The speaker from HoneyCoin pointed out that local currency stablecoins are more powerful than USD-pegged ones in Africa because they solve immediate local problems like high inflation and FX risk. - There is an inherent risk in stablecoins if they are not fully backed (e.g., 1:1 with fiat or US Treasuries), which underscores the need for regulatory oversight focused on consumer protection. - The overall sentiment is that stablecoins are the future of money movement, not just a niche technology, and their adoption will continue to grow across the continent. ![Screenshot at 00:00: The panel discussion at Norrsken Africa/Week 2025 features six speakers addressing the state and future of stablecoins and cross-border payments in Africa.](https://ss.rapidrecap.app/screens/tpZrUzjuCqg/00-00-00.jpg) **Context:** This video captures a panel discussion from Norrsken Africa/Week 2025 focused on the evolution and importance of stablecoins within the African financial ecosystem. The panel features representatives from various sectors, including venture capital (Koner Capital), payments infrastructure (Paga), and potentially blockchain/crypto infrastructure (HoneyCoin), discussing regulatory challenges, technological advantages, and the market appetite for stablecoin solutions in Africa. ## Detailed Analysis The panel addresses the rapid growth and necessity of stablecoins in African finance, noting that $12 trillion has been settled through stablecoins in the last half of the year, demonstrating massive adoption. Taiwo Oviosu, CEO of Paga, emphasizes that stablecoins simplify cross-border payments, allowing for near-instant settlement between countries like Nigeria and Rwanda, bypassing traditional banking friction. He also notes that Paga processes high volumes, often exceeding $1-2 billion monthly, via stablecoins. Adrian Henderson from Koner Capital highlights that stablecoins, particularly those pegged to local African currencies, mitigate high currency volatility and FX risk, making them a powerful tool for both consumers and businesses, unlike USD-pegged coins which may not address local pain points as effectively. Idilin Murungi from Yellow Card Financial stresses that regulatory clarity is lagging behind innovation, citing the need for regulators to catch up with technologies like stablecoins and remittances. She also points out the risk associated with poorly backed stablecoins, contrasting them with the fully backed models like USDC, which is backed by US Treasuries. The discussion concludes that local currency stablecoins are poised to become the standard for cross-border transactions in Africa, overriding the dominance of USD-pegged options due to their direct utility in combating local economic instability. ### Stablecoin Adoption & Volume - One speaker mentions $12 trillion settled via stablecoins in the last half-year - Paga processes $1-2 billion monthly using USDC for cross-border transfers - Local currency stablecoins are seen as more vital than USD-pegged ones for Africa's specific economic challenges. ### Paga's Use Case - Taiwo Oviosu confirms Paga facilitates instantaneous transfers (e.g., Nigeria to Rwanda) using stablecoins - They settled $1-2 billion monthly through this mechanism. ### Regulatory Landscape - Idilin Murungi notes that regulators are playing catch-up to innovation, citing the US 'Clarity for Payment Stablecoins Act' as an example of necessary framework development - The challenge is integrating consumer protection without stifling innovation. ### Risk Mitigation - Stablecoins reduce FX volatility and credit risk associated with relying on intermediary fiat rails, offering a more direct and potentially cheaper transfer mechanism. ### Future Outlook - The consensus is that stablecoins, especially CBDCs, will see greater adoption, and the industry must evolve regulation to support this growth rather than hinder it. ![Screenshot at 00:00: The panel convenes for a discussion on cross-border payments and stablecoins at Africa/Week 2025, featuring representatives from finance and VC sectors.](https://ss.rapidrecap.app/screens/tpZrUzjuCqg/00-00-00.jpg) ![Screenshot at 00:38: David Nandwa of HoneyCoin discusses the importance of local currency stablecoins for mitigating FX volatility in Africa.](https://ss.rapidrecap.app/screens/tpZrUzjuCqg/00-00-38.jpg) ![Screenshot at 00:57: Adrian Henderson of Koner Capital explains why stablecoins are crucial for reducing friction in African financial infrastructure.](https://ss.rapidrecap.app/screens/tpZrUzjuCqg/00-00-57.jpg) ![Screenshot at 02:33: Idilin Murungi of Yellow Card Financial addresses regulatory challenges, noting that markets are often self-regulating until formal rules catch up.](https://ss.rapidrecap.app/screens/tpZrUzjuCqg/00-02-33.jpg) ![Screenshot at 03:37: Jarred Kennedy of Norrsken VC elaborates on the importance of stablecoin backing \(like US Treasuries\) to mitigate systemic risk.](https://ss.rapidrecap.app/screens/tpZrUzjuCqg/00-03-37.jpg)