Several testimonies reveal the preference for USDT over Bitcoin in the African continent, as well as in other economically unstable countries.
Despite Bitcoin being the most significant digital asset by market capitalization, various testimonies from industry figures reveal how people in countries with unstable currencies are more inclined towards stablecoins, particularly USDT.
The debate stemmed from a post on X by Russell Okung, former American football player and Bitcoin advocate. Okung stated:
Such observation is consistent with the experiences shared by other Bitcoin proponents like podcaster Peter McCormack. During his travels in Argentina, Africa, Lebanon, and Venezuela, McCormack also noted a clear preference towards stablecoins pegged to the US dollar.
According to McCormack’s experience, Bitcoin is understood and adopted first by the middle class rather than the poorer class. As he stated, Bitcoin can help rebuild the middle class that fiat currency has destroyed in recent years.
Other testimonies
Austin Campbell, founder and partner of Zero Knowledge Consulting, shared his opinion on the matter. According to him, currently Bitcoin is seen more as a store of value, comparable to gold. Therefore, it is not surprising that people opt for stable assets like USDT for daily transactions.
Investor Stephen Cole also expressed a similar opinion, stating how stablecoins are a complementary tool for Bitcoin adoption, especially for people living in hyperinflation conditions.
Exchange data
A similar trend was highlighted in the latest report from the Mexican exchange Bitso. The report emphasizes how, despite high adoption of digital assets in countries with unstable economies such as Argentina and Colombia, the majority of users seem to prefer stablecoins like USDT and USDC over Bitcoin.
One of the reasons for this preference is that in less developed economies, preserving purchasing power by acquiring a more stable currency than the local one takes precedence over a propensity for savings and a long-term view.
