What are stablecoins?

Stablecoins bring together the flexibility of digital currencies and the stability of traditional money, making transactions more secure and reliable.

At nsave, we’re introducing stablecoin wallets that make it easier for people in underserved regions like Nigeria to receive payments directly with our crypto ramp-off feature. Cryptocurrencies have significantly changed how people worldwide send, receive, and keep money. Although cryptocurrencies can be volatile, making it complex to safely navigate the crypto space, especially for those who are new to it, a particular type of digital currency, stablecoin, offers a safer and more practical solution for everyday financial needs. 

What is Cryptocurrency and How Does it Work?

Cryptocurrency is a form of digital or virtual currency that can be used for electronic payments. Every transaction made using cryptocurrency is secured by an encryption algorithm called cryptography and recorded on a public ledger called a blockchain. 

Why Do People Use Crypto?

For millions around the world, crypto offers an alternative to traditional banks, and users get to enjoy its features.

One major reason people use cryptocurrency is speed. Traditional financial systems, especially for international payments, are known for being slow, often taking several days to complete a transfer. With crypto, transactions can be processed in minutes, regardless of borders. 

Another advantage of using crypto is the low cost of transactions. Unlike the traditional money transfer services that charge high fees as high as 10% or more of the transaction amount, crypto transfers typically incur much smaller fees.

Accessibility is another reason. Many people around the world, especially in underserved regions like some parts of Nigeria, lack access to reliable banking services. Crypto offers a way to store and transfer money with just a smartphone and internet connection, without needing a bank account or credit history. This allows more people, that would have been excluded, to be a part of global finance. 

Blockchain technology, which cryptocurrencies are built on, is also very secure and transparent. Every transaction is recorded on a public ledger, which makes it almost impossible to alter or falsify transaction history. For users, this means greater confidence in the integrity of their funds, as well as protection against fraud, censorship, and third-party interference.

Cryptocurrencies, however, are also known for being highly volatile. Prices can swing wildly in a short amount of time, making them risky for daily financial use. This is where stablecoins come in.

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What is Stablecoin?

Stablecoin is a type of cryptocurrency that is pegged to the value of a fiat currency, such as the US dollar. Unlike other cryptocurrencies that are highly volatile, stablecoins like USDC (USD Coin) or USDT (Tether) maintain a 1:1 value with USD. This makes them ideal for cross-border payments, saving in dollars, and avoiding crypto price swings. 

There are several types of stablecoins:

• Fiat-backed (e.g., USDC, USDT): Backed 1:1 by actual USD reserves.
• Crypto-backed: Collateralised by other cryptocurrencies.
• Algorithmic: Uses smart contracts to stabilise value (more experimental and riskier).

Common Uses of Crypto in Nigeria

Within Nigeria, a country that’s fast becoming one of the largest crypto markets in the world, some common reasons for using crypto are: 

• Payments & Remittances: Many Nigerians use crypto to receive money from abroad quickly and affordably, especially in a country where international transfers, when done traditionally, are often slow, expensive, and restricted.  
• Hedging Against Naira Devaluation: The Nigerian naira (NGN) has experienced high inflation and volatility. Crypto, especially stablecoins like USDT and USDC, offers a way to preserve monetary value in USD. 
• Access to Global Finance: Crypto opens up opportunities for Nigerians to participate in the global digital economy, access decentralised finance (DeFi) services, or invest in tokenised assets. 
• Freelancing and Online Work: With the rise of remote work, many Nigerian freelancers and online entrepreneurs get paid in crypto by international clients. 

How nsave’s Stablecoin Off-Ramp Solves a Real Problem

For Nigerians who rely on crypto to receive income, remittances, or business payments, turning crypto into usable local currency can be challenging. Some people turn to informal P2P networks or even criminal intermediaries — at the risk of fraud, delays, or loss of funds. 

With nsave’s stablecoin off-ramp, nsavers in Nigeria can:

• Receive stablecoins (like USDC or USDT) from reliable platforms such as Binance or Coinbase
• Hold as USD
• Use or withdraw funds easily — no need to understand crypto mechanics or rely on informal agents

Why it Matters

For millions of Nigerians facing currency instability, limited access to international finance, and unreliable remittance channels, stablecoins represent more than just innovation. They offer economic stability and empowerment. And now, with nsave, stablecoins can be used safely and securely for you to spend your money freely. We’re building financial solutions that meet the your realities and priorities, not the assumptions of traditional banking.

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