Africans would rather have virtual coins than fiat.

If I give you 1 yuan RMB or give you Virtual Money worth 1 yuan, how would you choose? Most Chinese people might choose RMB without hesitation—after all, fiat is convenient to circulate and the value is stable. As for Virtual Money? The price fluctuates greatly, and the risk is too high.

But if this multiple-choice question were posed in Africa, Southeast Asia, South America, or the Middle East, the answer might be completely different—people would prefer Virtual Money over the equivalent value in their local fiat. Behind this lies an astonishing story about financial survival.

01 The Poorest Continent, the Most Advanced Financial Options

The image of poverty in Africa is deeply ingrained, but what you may not know is that this continent is leading the revolution in digital finance.

In 2023, the number of digital payment accounts in Africa reached 856 million, accounting for more than half of the global total. In Kenya, 75.8% of adults use digital payments, while in South Africa the figure is 70.5%, far exceeding Germany's 42% penetration rate. Even more surprisingly, from July 2023 to June 2024, Sub-Saharan Africa transacted $125 billion worth of cryptocurrencies, with Nigeria alone contributing $59 billion.

Africans are not engaging in "gambling-style trading of coins"—more than 50% of their transactions are in stablecoins, which are cryptocurrencies pegged to fiat currencies or real assets. For example, Tether ( USDT ) is anchored to the US dollar at a 1:1 ratio, providing a safe haven in turbulent economies.

Why are Africans so dependent on stablecoins?

The answer is simple: survival. The average inflation rate in Africa in 2024 is as high as 18.6%, and Zimbabwe reaches 92%. The rapid devaluation of fiat makes saving meaningless. Moreover, the government's foreign exchange controls make it nearly impossible for ordinary people to obtain stable currencies like the US dollar.

Stablecoins provide a perfect solution:

• Through platforms like Yellow Card, Africans can exchange "Virtual Money" for a better rate than the black market.
• No bank account? Just find a local intermediary to exchange cash for stablecoins.
• The cost of cross-border remittances has decreased from 7.8% to 0.1%
• Some companies pay salaries directly in stablecoins

This innovation has even driven the popularization of digital payments—when money is all on the phone, QR code payments naturally become the preferred choice.

02 The Global Wave of Stablecoins

Africa is not an exception:

• Turkey: The inflation crisis has made it the fourth largest cryptocurrency market in the world, with Tether trading volume once accounting for 30% of the global total.
• South America: After Argentina abolished currency controls, stablecoin trading volume soared by 100%
• Southeast Asia: Becoming a new channel for online gambling fraud funds
• Russia: After being kicked out of SWIFT, turned to stablecoins for foreign trade settlement.

Data shows that the scale of stablecoins has grown 45 times over the past 6 years, reaching $246 billion, with an annual trading volume of $28 trillion, surpassing Visa and Mastercard.

03 Who is earning the dividends from stablecoins?

Take Tether, the issuer of Tether (USDT), as an example:

• 150 employees will earn 13 billion dollars in 2024, averaging 93 million dollars per person.
• Sources of income: fees, reserve interest, market operation arbitrage
• Has become the 19th largest holder of US Treasury bonds globally.

04 Shadow Dollar: The Extension of Financial Hegemony

The vast majority of stablecoins are pegged to the US dollar/Treasuries, creating a closed loop of "users buy stablecoins → issuers increase their holdings of dollars." This essentially creates a "shadow dollar," reinforcing the dominance of the dollar.

The United States has passed the GENIUS Act to regulate stablecoins, and it is expected that by 2028 the scale will reach $2 trillion, creating a demand for $1.6 trillion in U.S. Treasuries. Other countries are also taking action:

• Hong Kong launches a stablecoin pegged to the Hong Kong dollar
• JD-HKD stablecoin test by JD
• Singapore, the EU, and Russia are planning their national currency stablecoins.

05 Financial Nuclear Bomb: The Double-Edged Sword of Stablecoins

Stablecoins are not without risks:

• The 2023 Silicon Valley Bank crisis led to the de-pegging and plummet of USDC.
• Tether has frozen $27 million in assets of a Russian exchange.
• The issue of reserve transparency has always existed.

Cryptocurrency appears to be decentralized, but it may actually be forming new financial centers—centers that are still controlled by a few giants and countries.

This silent financial revolution is reshaping the global economic landscape. For ordinary people, it may be a tool to combat inflation; for nations, it could be a new battleground for monetary sovereignty; and for the world order, it may be writing the next chapter in the story of financial hegemony.

When currency is no longer just paper money and value is stored in code, we are all witnessing history - it's just that most people have not yet realized it.