Digital currencies were supposed to make sending money across borders cheaper and faster. The cost of converting these digital dollars into actual currency, however, is still higher than expected for African users.
According to recent research, while the median conversion cost across Africa is about 3%, some countries face significantly worse rates, with Botswana experiencing costs as high as 19.4%.
The data presents a concerning picture. The median cost for Botswana residents to convert their digital currency into local currency in January 2026 was 19.4%. Research that examined almost 94,000 pricing checks across 66 currency corridors in Africa revealed this to be the highest rate.
Competition drives the price gap
Research from payments company Borderless.xyz found that while the technology itself works fine, moving money around the world for almost nothing, the real problem happens at the end of the line. That final step, when digital money becomes cash you can actually spend, is where costs pile up.
Across Africa, the typical cost for this conversion sits at about 3%, or 299 basis points. Compare that to Latin America, where users pay around 1.3%, or Asia, where the cost drops to just 0.07%. African customers are clearly getting a worse deal.
Congo wasn’t far behind Botswana, with conversion costs running over 13%. These high prices show up in places where only one or two companies handle these transactions. Without competition, there’s nothing stopping them from charging whatever they want.
South Africa tells a different story. There, multiple companies compete for business, and conversion costs stayed around 1.5% in early 2026. The pattern is clear: more competition means lower prices. The technology isn’t the issue; it’s about how many companies are fighting for customers.
This creates a strange situation. Mobile technologies and services in Africa generated $220 billion in economic value in 2024. But that growth isn’t helping everyone equally. People in certain countries are stuck paying premium prices while their neighbors get better deals.
Researchers created a measurement called the “TradFi Premium” to compare digital currency rates with traditional bank exchange rates. Around the world, the difference between the two is tiny, just 0.05%. In Africa, that gap jumps to 1.2%, or 119 basis points. African users are paying extra just to access the same digital money that costs almost nothing elsewhere.
At the World Economic Forum in Davos on January 24, economist Vera Songwe talked about how digital currencies are cutting costs in a region where traditional money transfer services often charge 6% or more, about $6 for every $100 sent. She’s right about some places. However, the new data shows this only works where companies actually compete.
The findings reveal that in some African countries, using digital currencies actually costs more than the old-fashioned wire transfer services everyone thought they would replace. That is the opposite of what was supposed to happen.
More providers needed to lower costs
More technology is not the answer. The only thing these pricey avenues need is more businesses eager to conduct business there. Customers are forced to pay the established price when a market is controlled by a single provider.
Government rules matter too. Countries without clear regulations for digital currencies end up stuck in place. New companies will not enter markets where the legal situation remains unclear, and without new companies, prices stay high.
The blockchain technology works exactly as promised, it moves money across borders quickly and cheaply. But until more providers enter markets like Botswana and Congo, and until governments create clear rules that encourage competition, many African users will keep paying far more than they should. The revolution in money transfers is here, but it’s not reaching everyone yet.
