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Central Banks Are Fighting Inflation at 12%: While Stablecoin Peg 1:1, Who's Wining The Trust
Inflation bites, trust shifts📉💸
Nigeria’s naira lost 40% in 2023, Zimbabwe battles triple-digit inflation, and Ethiopia’s birr fell 30%. Central banks hike rates, but confidence in fiat erodes. Meanwhile, stablecoins pegged 1:1 to the dollar are booming, $200B+ in Africa & ME transactions last year, equal to 6.7% of GDP
In Nigeria, 70% of crypto trades are stablecoins; in Ethiopia, retail flows surged +180% YoY. Across Ghana, Kenya, and Sudan, merchants use them to bypass FX shortages, while remittances flow faster and cheaper.
But this isn’t just about volatility hedging, it’s a trust migration. Citizen’s swap inflating cash for tokens they see as “digital dollars,” even as central banks test CBDCs and regulation to reclaim credibility
Trust in money is fragmenting. Fiat for legacy, stablecoins for survival. Policymakers must adapt to this dual reality.
Listen to unpack Africa’s inflation–stablecoin paradox.
Nigeria’s naira lost 40% in 2023, Zimbabwe battles triple-digit inflation, and Ethiopia’s birr fell 30%. Central banks hike rates, but confidence in fiat erodes. Meanwhile, stablecoins pegged 1:1 to the dollar are booming, $200B+ in Africa & ME transactions last year, equal to 6.7% of GDP
In Nigeria, 70% of crypto trades are stablecoins; in Ethiopia, retail flows surged +180% YoY. Across Ghana, Kenya, and Sudan, merchants use them to bypass FX shortages, while remittances flow faster and cheaper.
But this isn’t just about volatility hedging, it’s a trust migration. Citizen’s swap inflating cash for tokens they see as “digital dollars,” even as central banks test CBDCs and regulation to reclaim credibility
Trust in money is fragmenting. Fiat for legacy, stablecoins for survival. Policymakers must adapt to this dual reality.
Listen to unpack Africa’s inflation–stablecoin paradox.
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By WeWireInflation bites, trust shifts📉💸
Nigeria’s naira lost 40% in 2023, Zimbabwe battles triple-digit inflation, and Ethiopia’s birr fell 30%. Central banks hike rates, but confidence in fiat erodes. Meanwhile, stablecoins pegged 1:1 to the dollar are booming, $200B+ in Africa & ME transactions last year, equal to 6.7% of GDP
In Nigeria, 70% of crypto trades are stablecoins; in Ethiopia, retail flows surged +180% YoY. Across Ghana, Kenya, and Sudan, merchants use them to bypass FX shortages, while remittances flow faster and cheaper.
But this isn’t just about volatility hedging, it’s a trust migration. Citizen’s swap inflating cash for tokens they see as “digital dollars,” even as central banks test CBDCs and regulation to reclaim credibility
Trust in money is fragmenting. Fiat for legacy, stablecoins for survival. Policymakers must adapt to this dual reality.
Listen to unpack Africa’s inflation–stablecoin paradox.
Nigeria’s naira lost 40% in 2023, Zimbabwe battles triple-digit inflation, and Ethiopia’s birr fell 30%. Central banks hike rates, but confidence in fiat erodes. Meanwhile, stablecoins pegged 1:1 to the dollar are booming, $200B+ in Africa & ME transactions last year, equal to 6.7% of GDP
In Nigeria, 70% of crypto trades are stablecoins; in Ethiopia, retail flows surged +180% YoY. Across Ghana, Kenya, and Sudan, merchants use them to bypass FX shortages, while remittances flow faster and cheaper.
But this isn’t just about volatility hedging, it’s a trust migration. Citizen’s swap inflating cash for tokens they see as “digital dollars,” even as central banks test CBDCs and regulation to reclaim credibility
Trust in money is fragmenting. Fiat for legacy, stablecoins for survival. Policymakers must adapt to this dual reality.
Listen to unpack Africa’s inflation–stablecoin paradox.