Visa pilots stablecoins for cross-border

Visa has launched a pilot program in the Democratic Republic of the Congo to test the use of stablecoins for settling international mobile money transfers. The initiative, developed in partnership with M-Pesa and African payments network Onafriq, aims to determine whether blockchain technology can make cross-border transactions faster, more efficient and less expensive.

For M-Pesa users, the new system is expected to operate entirely behind the scenes. Stablecoins will be used only for transaction settlement, meaning customers should experience quicker wallet top-ups, smoother international business payments and lower remittance costs without changing the way they use the service.

According to the World Bank, sending money to Sub-Saharan Africa costs nearly 8% of the transfer value on average, making it the world's most expensive remittance corridor. Traditional transfers processed through the SWIFT network often take several days to complete and involve multiple intermediary banks, each charging its own fees. Blockchain-based settlement could reduce processing times to just a few minutes while significantly lowering transaction costs.

The Democratic Republic of the Congo was chosen for the pilot because mobile payment services are expanding rapidly across the country. The project also supports Visa's broader digital currency strategy. Earlier this year, the company partnered with African cryptocurrency exchange Yellow Card to explore the use of stablecoins for cross-border settlements and treasury management.

The pilot reflects growing interest in using digital dollars across Africa's financial sector. At the same time, it may create new challenges for regulators. The Central Bank of the Congo has long sought to reduce the country's reliance on the US dollar and promote the use of the local franc. However, stablecoins could effectively introduce a digital version of the US dollar into the country's mobile payments ecosystem, potentially complicating those efforts.