According to Daniel Mulondo, General Secretary of the Blockchain Association of Uganda, stablecoins are poised to become the most transformative blockchain innovation for Uganda’s economy, unlocking cheaper remittances, faster cross-border trade, and broader financial inclusion long before Bitcoin reaches mainstream utility.
Speaking during an exclusive interview with CoinAfrica, Mulondo argued that Africa’s crypto conversation is gradually moving away from speculation toward real-world applications.
“I totally believe stablecoins will have a bigger impact because people want real-world solutions. They will support cross-border payments, facilitate trade and enable tokenization,” Mulondo said.
From speculation to utility
Across much of Africa, cryptocurrency adoption initially surged through retail trading and Bitcoin speculation. But as regulators, businesses and consumers mature, stablecoins are increasingly emerging as the infrastructure layer powering digital commerce.
Unlike Bitcoin, whose price fluctuates significantly, stablecoins are pegged to fiat currencies, making them more suitable for everyday transactions, payroll, remittances and business settlements.
Mulondo believes that distinction will prove decisive for Uganda.
“People want to move beyond noise to practical financial solutions,” he said, pointing to stablecoins’ ability to facilitate international commerce with greater efficiency while reducing transaction friction.
Remittances remain Africa’s biggest opportunity
Uganda receives billions of dollars annually through diaspora remittances, yet traditional money transfer services remain expensive.
Mulondo estimates that many Ugandans working abroad lose around 10% of their transfers to fees when sending money home through conventional channels.
“Stable currencies will lower these costs,” he said, explaining that blockchain-based payment rails and digital wallets could dramatically improve affordability for African families relying on cross-border transfers.
For many households, lower remittance costs translate directly into higher disposable income, making stablecoins less of an investment product and more of an economic tool.
Regulation could unlock the next phase
The optimism comes as Uganda gradually develops its digital asset regulatory framework.
According to Mulondo, multiple government institutions—including the Ministry of Finance, Bank of Uganda, Financial Intelligence Authority, Capital Markets Authority and other stakeholders—are working through a technical committee to establish policy direction for blockchain and digital assets.
While he clarified that he does not speak on behalf of the government, Mulondo expects greater regulatory clarity to emerge as policymakers continue benchmarking frameworks from countries including Nigeria and Kenya.
A clearer legal framework, he argues, would encourage both innovation and institutional participation while providing stronger consumer protections.
Tokenization comes next
Beyond payments, Mulondo believes stablecoins will serve as the gateway to tokenized assets across Africa.
Tokenization allows real-world assets—including real estate, commodities and investment products—to be represented digitally on blockchain networks, enabling fractional ownership and broader investor participation.
He points to developments in the United Arab Emirates, where major digital asset firms continue expanding operations, as evidence that tokenization is moving from concept to commercial reality.
As regulatory certainty improves, Uganda could follow a similar trajectory, particularly if local innovators gain access to supportive infrastructure and capital.
Payments before Bitcoin
Asked what will bring the next wave of crypto adoption to Uganda over the next five years, Mulondo did not hesitate.
His answer was simple:
Payments.
He expects payment solutions powered by stablecoins to onboard millions of new users before more sophisticated blockchain applications such as tokenization achieve mainstream adoption.
Cross-border commerce, arbitrage opportunities, AI-assisted trading and digital wallets are all likely to contribute to that growth, but payments remain the foundation.
“Payments will bring the adoption. Tokenization will come later,” he said.
Africa’s crypto conversation is evolving
Mulondo’s perspective reflects a broader trend unfolding across Africa.
Rather than viewing cryptocurrency solely through the lens of investment returns, governments, fintech companies and blockchain builders are increasingly focusing on financial infrastructure.
Stablecoins are becoming central to discussions around merchant payments, international trade, treasury management and financial inclusion.
For Uganda—a country with a youthful population, rising internet penetration and expanding blockchain ecosystem—that transition could prove more consequential than Bitcoin’s price movements.
If Mulondo’s prediction proves accurate, stablecoins may become not just another crypto asset, but the backbone of the next phase of digital economic growth in Uganda.
To learn more about stablecoins in Uganda, read the full interview here: Uganda’s Crypto Future Is Bigger Than Most People Realize: A Conversation with Daniel Mulondo
