Stripe Expands Stablecoin Support to 25 African Countries, Leaving Out 'Big Four' Due to Regulatory Hurdles
Stripe, a leading global payments company, has expanded its stablecoin support to 25 African countries. However, notable absentees from the list include Nigeria, Kenya, South Africa, and Egypt. This move comes as two significant trends - the mainstreaming of stablecoins and the growing importance of regulatory readiness - collide in the global payments landscape.
Stripe's decision to exclude the 'Big Four' African countries is likely due to regulatory, financial infrastructure, or market readiness challenges. For instance, Nigeria has classified digital assets as securities, giving the Central Bank full control over stablecoin issuers. This complex licensing environment makes it difficult for global fintechs like Stripe to operate.
Kenya is still in the process of finalizing its first legal framework for crypto, which would place the Central Bank of Kenya in charge of stablecoin issuers. South Africa, on the other hand, has not yet slotted stablecoins into its financial regulations under the FAIS Act. Egypt's regulatory environment for stablecoins also appears to be a barrier.
Stripe's move allows businesses worldwide to send, receive, and hold stablecoins like USDC and USDB with the same ease as fiat. The company has rolled out this support across 101 countries, prioritizing compliance and regulatory certainty in smaller, crypto-friendlier markets.
Stripe's expansion of stablecoin support in Africa, while significant, has been tempered by regulatory challenges in key markets. The company's focus on compliance and regulatory certainty suggests that it is waiting for clearer regulatory environments in Nigeria, Kenya, South Africa, and Egypt before extending its stablecoin services to these countries.
