The idea that stablecoins can slash remittance costs across Africa is compelling — but recent data shows the reality is far more uneven. Borderless.xyz’s January figures reveal that the median spread for stablecoin-to-fiat conversions across African corridors was nearly 300 basis points (about 3%). That’s substantially higher than Latin America’s ~1.3% and Asia’s almost negligible 0.07%. Those gaps matter: they directly reduce the money arriving in recipients’ pockets. Digging inside the continent exposes even sharper contrasts. South Africa, with multiple competing providers and deeper liquidity, posted one of the lowest conversion costs at roughly 1.5%. At the other extreme, Botswana’s median spread climbed to nearly 19.4% in January (though it eased later that month), and the Democratic Republic of Congo saw spreads above 13%. These aren’t isolated blips — the dataset spans 66 currency corridors and nearly 94,000 rate observations. What’s driving these differences is less about blockchain technology and more about what happens where crypto meets cash. “Spread” here refers to the execution cost — the bid-ask gap between the price a provider will buy a stablecoin for and the price it will sell the equivalent fiat. Where several payment providers compete, spreads tend to sit in the 1.5–4% range; where a single player dominates, spreads can top 13%. Borderless.xyz also compared stablecoin mid-rates with interbank FX mid-market rates, a metric it calls the TradFi premium. Across 33 currencies globally, the median TradFi premium was tiny — about 5 basis points (0.05%) — suggesting parity in many markets. In Africa, however, the median premium widened to roughly 120 basis points (about 1.2%), helping explain why stablecoins don’t automatically deliver large savings in every corridor. Economists still note that stablecoins can cut remittance costs versus legacy services (which often charge around $6 per $100 sent), but the new data adds important nuance. Faster settlement and lower fees are possible, but only when local on-ramps and off-ramps function well. For senders and recipients, that means some corridors offer real savings while others remain frustratingly expensive. For regulators and newcomers, the lesson is clear: improving cross-border rails alone isn’t enough. Bolstering local competition, deepening liquidity, and opening more reliable fiat on- and off-ramps are essential to translating the promise of stablecoins into consistent, tangible benefits for African remittance corridors. Featured image from andBeyond, chart from TradingView. Read more AI-generated news on: undefined/news