IMF: Stablecoin use surges in developing nations, Nigeria leads with 65% of crypto inflows in 2024

Economic Pressure Drives Stablecoin Uptake

Recent International Monetary Fund (IMF) research analyzed $21.4 trillion in stablecoin transactions across 188 countries between 2018 and 2025, highlighting the influence of economic challenges on cryptocurrency usage.

Instead of holding physical US dollars, users are moving toward digital wallets where stablecoins pegged to the dollar can be stored and transferred internationally at any time. This marks a significant evolution in how individuals and businesses manage and move US dollar value globally.

The IMF’s data shows a strong connection between increased stablecoin usage and periods of financial distress. Approximately 75% of global stablecoin holdings are found in emerging and developing markets, underscoring adoption outside advanced economies.

Governments in these regions often impose capital controls to restrict foreign exchange, and the IMF’s research notes that stablecoin activity rises by about 30% in the six months following such controls.

During a currency crisis, the impact is even greater. Stablecoin transactions surge by around 75% over a year following a severe loss of confidence in the local currency, with adoption often remaining elevated even after conditions stabilize.

Stablecoins are not just tools for money transfers but have become important financial instruments, particularly where local currencies lose value or access to dollars is limited.

For people facing depreciating national currencies or difficulty accessing dollars, dollar-denominated stablecoins offer a practical solution, allowing them to hold digital dollars without relying on conventional US bank accounts.

Nigeria Emerges as a Key Example

Nigeria stands as a vivid illustration of the digital dollarization trend. According to the IMF’s Nigeria Report 2026, stablecoins represented more than 65% of the country’s total crypto inflows in 2024.

Dollar-pegged stablecoins are becoming a preferred means for Nigerians to send money internationally and store value outside the domestic banking system, as the country grapples with persistent currency devaluation and demand for foreign exchange.

This adoption pattern enables companies to utilize stablecoins for cross-border payments and allows individuals to preserve their wealth and receive remittances without direct exposure to domestic financial instability.

Nigeria demonstrates how stablecoins can expand rapidly in markets lacking reliable access to traditional dollars, and its experience is feeding growing central bank interest in the global use of these assets.

Mini dictionary: IMF (International Monetary Fund), a global organization that monitors economic and financial developments, provides policy advice, financial support, and research to 190 countries.

Central Banks Confront New Challenges

Rising stablecoin adoption is raising fresh challenges for central banks overseeing financial stability. Swiss National Bank board member Petra Tschudin warned on September 30 that widespread stablecoin usage may undermine the effectiveness of monetary policy by encouraging deposit migrations from commercial banks to digital assets.

Commercial banks depend on deposits to provide loans, and central banks use interest rates to influence monetary conditions. As more deposits move into stablecoins, these traditional monetary tools could weaken, especially if the stablecoins are denominated in foreign currencies like the US dollar.

If residents prefer dollar-based stablecoins over their local currency, central banks face diminished control over their own financial systems and may struggle to support domestic currency demand.

Stablecoins allow digital value transfers outside conventional financial systems, offering businesses new options for international settlements and individuals a means to store dollar-value assets through digital wallets.

At the same time, the widespread use of stablecoins poses concerns over financial sovereignty and stability for countries where the domestic currency remains fragile. The IMF study concludes that this shift goes beyond crypto trading and blockchain payments, and that millions now use stablecoins to directly gain US dollar exposure without relying on local banks.

Ultimately, digital dollars via stablecoins are changing the landscape of banking, foreign exchange, cross-border payments, and monetary policy, especially in economies grappling with instability.