DFC

CoinTelegraph reposts that stablecoin adoption among Africans in cities like Nairobi and Lagos is driven in part by the steep costs of traditional financial services. Sending remittances through banks or money transfer operators averages around 8.45% in Sub-Saharan Africa, making it one of the world’s most expensive corridors. In contrast, digital-first platforms that leverage stablecoins have reduced typical fees to about 4% or even less, making transactions significantly cheaper, especially for the $200-$1,000 transfers that sustain families and small businesses. By offering lower costs, faster settlement, and protection from local currency volatility, stablecoins are transforming daily financial life and making payments, savings, and trade more affordable and practical for millions—though users must still navigate risks around regulation and security as the ecosystem evolves. [Source: CoinTelegraph]

According to an article in the Guardian, despite significant digital payment innovation in some regions, cash remains the dominant form of transaction across many African countries, driven by persistent trust issues, currency volatility, and limited point-of-sale adoption of cards and mobile money. The article highlights how merchants and consumers still favor cash due to practical challenges and skepticism about digital systems. The Pan-African Payment and Settlement System (Papss), recently launched under the African Continental Free Trade Area, aims to transform cross-border payments by enabling instant, low-fee transfers in local currencies and promoting financial sovereignty. However, Papss faces hurdles including infrastructure gaps, regulatory alignment with central banks, and competition from established global networks. If successful, Papss could become a game-changer for small businesses—streamlining trade and making payments as easy as texting, but wide adoption will depend on overcoming existing barriers and coordinating with national initiatives. [Source: The Guardian]

According to CashEssentials, CashTech is emerging as a transformative force bridging physical cash and digital finance, reflecting a new wave of innovation from fintechs and traditional banks. Recent examples include Revolut’s rollout of branded ATMs in Spain and Lloyds Bank’s collaboration with PayPoint, enabling cash deposits at thousands of UK retail locations, which together make cash more accessible and secure in today's digital-oriented financial landscape. The sector’s advancements—like apps allowing cash access via QR codes, SMS-based welfare disbursements, charity coins, online-to-cash payment systems, and virtual ATM networks—demonstrate how technology can strengthen financial inclusion, modernize cash handling, and integrate physical and digital payment options. Driven by regulation, consumer demand, and the need for equitable payment infrastructure, CashTech is shaping a future where both cash and digital money coexist.

OMFIF published an article that argues that much of the ongoing criticism of stablecoins is based on persistent misconceptions rather than evidence, especially in light of the recent GENIUS Act in the US, which provides a clear legal framework for stablecoins. It rebuts the conflation of stablecoins with unstable financial products by pointing out that, like government money market funds during crises, regulated stablecoins are fully backed and resilient. The critique that stablecoins undermine the “singleness of money” is challenged by noting that even bank deposits only maintain their supposed uniformity through government intervention, whereas regulated stablecoins rely on strict reserve and insolvency protections. Finally, claims of stablecoins being primarily used for illicit activity are debunked with data showing crime-related crypto use is a tiny fraction of total transactions, especially compared to traditional finance. The article concludes that unlocking stablecoins’ potential requires clear-headed analysis and learning the right lessons from history, not ideological resistance or outdated fears. [Source: OMFIF]

UK Finance is launching a collaborative industry pilot to deliver live transactions using tokenized sterling deposits (GBTD). Building on lessons from the U.K. Regulated Liability Network (RLN) project, the pilot will test three use cases—person-to-person (P2P) online marketplace payments, remortgaging, and digital asset settlement—running until mid-2026. Major banks including Barclays, HSBC, Lloyds, NatWest, Nationwide, and Santander are participating with support from Quant, EY, and Linklaters. The initiative aims to improve payment efficiency, fraud reduction, and settlement transparency, positioning the United Kingdom as a leader in programmable digital money and supporting broader government innovation goals such as the National Payments Vision. The platform will be interoperable across digital payment systems, and UK Finance will keep stakeholders updated through events and webinars. [Source: UK Finance] https://www.ukfinance.org.uk/policy-and-guidance/reports-and-publications/rln-reports-2024 https://www.bankofengland.co.uk/payment-and-settlement/the-national-payments-vision

European Central Bank (ECB) President Christine Lagarde and European Commissioner Valdis Dombrovskis reached an agreement on the next steps for the digital euro, at a meeting of European Union (EU) finance ministers (the "European Council") on September 18-19, 2025. Dombrovskis noted that, while progress has been slow but steady over the past two years, there is now increased urgency to resolve open issues and reach political consensus. He noted that a political agreement on the institutional framework for setting holding limits had been reached, ensuring that both the Council and the ECB have a role, which injects fresh momentum toward reaching a common approach by end-2025. Paschal Donohoe, the President of the Eurogroup of Eurozone finance ministers, confirmed that ongoing legal drafting will continue under the Council Presidency, with further presentations to ministers expected. [Source: European Commission and European Council] https://www.consilium.europa.eu/en/press/press-releases/2025/09/19/remarks-by-paschal-donohoe-following-the-eurogroup-meeting-of-19-september-2025/

A speech by Ron Morrow, Bank of Canada Executive Director of Payments, Supervision and Oversight, highlights Canada’s need to accelerate payments innovation, noting the country lags behind peers in adopting new technologies, supporting new entrants, and providing faster, cheaper payment options. While cryptocurrency use for payments remains limited due to volatility, stablecoins are gaining traction, especially for cross-border transfers, but require robust regulation to ensure safety. The Bank of Canada emphasizes the importance of balancing speed with security, referencing recent regulatory steps like the Retail Payment Activities Act, which gives the Bank new oversight of payment service providers (PSPs). The speech calls for federal-provincial cooperation, faster rollout of real-time payments (RTR), advancement in open banking, and maintaining consumer trust, positioning the Bank as both a regulator and facilitator for future innovation in payments. [Source: Bank of Canada]