Nigeria has long been at the centre of global cryptocurrency conversations, with high volumes of trading and active peer-to-peer (P2P) markets. Stablecoins like USDT flow daily across borders, but questions remain about what those numbers actually represent: Are Nigerians primarily using stablecoins for payments, or is most activity still trading and speculation? According to Nathaniel Luz, Chief Operations Officer at crypto exchange YDPay, the answer is more practical than sensational.
Stablecoin Usage Driven by Real Payments
Asked to differentiate between real P2P payments and speculative trading, Luz avoided exact figures but was clear on trends:
“I believe a greater percentage of stablecoin volume in Nigeria is actual P2P payments, not trading, speculation, or arbitrage. The ratio has pretty much remained the same over the years.”
Luz argues that adoption in Nigeria is steady and functional, rather than a reflection of hype cycles. While P2P volume reported by exchanges can sometimes be inflated by bots or market makers, he emphasises that stablecoin transactions in Nigeria are mostly organic and person-to-person.
“Nobody is buying a stablecoin to get rich overnight, so you can trust that the P2P volume in that market is as organic and accurate as it can get,” he said.
Freelancers and Remote Work Fuel Adoption
A key driver of stablecoin usage is Nigeria’s growing remote workforce. Freelancers receiving international payments often rely on stablecoins like USDT because they are closer to the company’s legal tender.
“You will find a young undergraduate working remotely for an organisation in Sweden. The easiest way for this person to get paid is to use stablecoins,” Luz explained.
Beyond receiving income, stablecoins also influence spending. Users pay for services such as online courses, subscription platforms, and dollar-denominated apps like Spotify, Zoom, and Apple.
Adoption Driven by Utility, Not Ideology
Contrary to popular narratives around decentralisation and cryptocurrency ideology, most Nigerian users engage with stablecoins for practical reasons: seamless cross-border payments and easy access to funds.
“Stablecoins are controlled by big companies like Tether, Ripple, and Circle. They are not truly decentralised, yet people use them because they work,” Luz said.
This pragmatic approach shows that stablecoins are fulfilling the original promise of crypto, by providing a reliable digital medium for daily financial needs.
From Consumer Use to Infrastructure Layer
While P2P payments are visible, Luz sees a quieter, infrastructural layer of adoption emerging. Many users may not realise stablecoins are powering their transactions, especially in B2B and backend financial systems.
“The future will see stablecoins used primarily at the B2B layer, where the end user wouldn’t even know it’s being used,” he noted.
This perspective suggests that the real impact of stablecoins in Nigeria is less about hype or speculation and more about solving practical problems, keeping money moving, supporting remote work, and enabling seamless cross-border payments.
Steady, Practical Adoption Across Nigeria
Luz concludes that the adoption of stablecoins in Nigeria is incremental and pragmatic, not revolutionary, but highly valuable:
“People are making use of stablecoins to make actual P2P payments daily. Digital currency is becoming the new cash, and stablecoins are the way forward.”
The story of USDT in Nigeria, therefore, is not about ideology or speculation. It is about digital payments working reliably for everyday transactions, freelancers getting paid, subscriptions staying active, and money crossing borders with minimal friction.
