Stablecoins Posed Risks to Financial Sovereignty
Mauritius central bank Governor Priscilla Muthoora Thakoor warned that stablecoins threaten regional monetary stability.
Updated on Oct. 13, 2026 in Financial Services
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Mauritius central bank Governor Priscilla Muthoora Thakoor has identified stablecoins as a potential threat to financial stability and monetary sovereignty. Her comments come amid ongoing efforts to lower the high cost of cross-border transfers within Africa.
Why it matters
Persistent obstacles in cross-border payments have driven increased interest in stablecoins as an alternative payment tool. Officials fear these digital assets could undermine the effectiveness of regional financial controls.
Sub-Saharan Africa recorded 835 million mobile-money accounts in 2024. Transfers to the region cost an average of 8.37% per $200 transaction during the second quarter of 2024.
The players
Priscilla Muthoora Thakoor
She serves as the Governor of the central bank of Mauritius.
The details
Regional payment systems like the Pan-African Payment and Settlement System are being developed to reduce reliance on offshore correspondent banks. These systems seek to bypass intermediary currencies that currently drive up transfer costs for the continent.
Timeline
The average cost for $200 transfers to Sub-Saharan Africa was recorded in Q2 2024.
There were 835 million registered mobile-money accounts in Sub-Saharan Africa in 2024.
The G20 framework has set a target deadline of the end of 2027 for retail payment goals.
Market Landscape
Regional payment integration efforts are directly modeled to meet the G20 framework for retail-payment costs. These initiatives aim to modernize African financial infrastructure to compete with global digital payment standards.
Customers sending money to Sub-Saharan Africa may see lower transfer fees as new regional settlement platforms become operational. These developments aim to bring regional costs closer to the 1% target established by international goals.
The takeaway
The rise of stablecoins presents a complex challenge for central banks attempting to modernize payment systems while maintaining monetary control. Consumers should monitor for lower fees as regional networks aim to replace inefficient correspondent-bank paths by 2027.
Further reading
For more on the changing landscape of global banking, visit the Financial Services section.
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