Stablecoin conversion costs are highest globally in Africa, according to new data. Users face spreads ranging from 152 to 1,944 basis points when exchanging digital assets for local fiat currencies. The continent’s average cost is 2.3 times higher than Latin America and 44 times higher than Asia, with a lack of provider competition significantly driving up prices.
Stablecoin users in Africa pay more to convert their digital assets into local currencies than anywhere else on the planet. According to new data tracking stablecoin-to-fiat rates, the African market accounts for the world’s highest conversion costs.
The data, which focused on 13 African currencies, reveals a huge difference in costs across the continent. South Africa has the cheapest conversion costs at 152 basis points, while Botswana is the most expensive at 1,944 basis points.
Provider competition plays a decisive role in determining these costs. In corridors with multiple operators, spreads are typically between 150 and 410 basis points.
Markets dominated by a single provider see conversion costs exceeding 1,300 basis points. This significantly raises the barrier to entry for users moving between stablecoins and local fiat.
Africa dominates the list of the widest stablecoin spreads globally. The five widest spreads worldwide are all African, including Botswana, the Democratic Republic of Congo, and Zambia.
This concentration suggests nearly all global dispersion in stablecoin foreign exchange spreads is driven by African markets. The tightest corridors globally are all located outside Africa, ranging from just 7 basis points to 100 basis points.
On average, conversion costs in Africa stand at 299 basis points. This makes the continent 2.3 times more expensive than Latin America and 44 times more expensive than Asia.
