Fintech players back regulation to drive stablecoin adoption

Fintech firms and blockchain innovators are backing regulation as a key driver of stablecoin adoption, saying clear rules are essential to building trust, enabling integration with existing financial systems and unlocking long-term growth in Kenya’s digital finance sector.

The sentiment dominated discussions at the Nairobi Stablecoin Conference, held against the backdrop of Kenya’s enactment of Africa’s first standalone law governing virtual assets.

Speakers said the legislation positions the country as a potential regional hub, but stressed that adoption will ultimately depend on how forthcoming subsidiary regulations are implemented.

Wale Osidiende, Chief Operating Officer at Bitnob, said regulation is no longer a threat to innovation but a necessary foundation for scale.

“Regulations are coming, and that makes us relax, knowing that there are proper guidelines guiding how things are done. Stablecoins enable instant, low-cost cross-border settlements compared to traditional correspondent banking systems,” Osidiende said.

He added that Kenya’s transition from bank-led payments to mobile money provides a strong base for the next evolution of digital value transfer through stablecoins.

Edward Ndichu of WapiPay said regulation is central to building confidence in stablecoins, particularly among businesses and everyday users.

He noted that adoption is already significant, with estimates showing Kenyans transact about $500 million in stablecoins every month, involving millions of users.

Ndichu said regulation will help formalise this activity and support safer, more efficient use, likening stablecoins to mobile money, which also relies on digital representations of value backed on a one-to-one basis.

However, industry leaders cautioned against heavy-handed rules. Tony Olendo, Chairman of the Virtual Asset Chamber, said passing the law was only the first step and urged regulators to ensure subsidiary regulations clearly define licensing, oversight and institutional responsibilities.

“If you tax the industry too early, you will hamper growth. We are calling for simple, practical rules that allow the ecosystem time to mature,” Olendo said.

From a continental perspective, Moyo Sodipo, co-founder of Busha, said regulation is critical for African fintechs to compete globally as financial systems increasingly shift towards blockchain-based rails. He said clear rules reduce uncertainty and encourage responsible innovation.

On integration with traditional finance, blockchain operator Duncan Muchangi said regulatory clarity would enable seamless links between stablecoin platforms, banks and mobile money operators, reducing reliance on informal peer-to-peer trading.

From the lending sector, Annstella Mumbi, General Manager for Tala Kenya, said regulation could unlock new use cases such as tokenised lending, allowing lenders to access cheaper global capital and extend more affordable credit to consumers.

As Kenya moves to finalise its regulatory framework, fintech players say well-calibrated rules could accelerate stablecoin adoption, positioning the country as a leader in Africa’s next phase of digital finance.