Crypto exchange Coinbase will take place on January 11 revealed its partnership with Yellow Card, the largest and first licensed Stablecoin on/off ramp on the African continent, to expand the access of their products to emerging economies on the African continent.
Expansion into emerging economies
Coinbase will expand access to its products through this new partnership with Yellow Card, starting with 20 African countries. They will offer millions of African users access to USD Coin (USDC) on the Coinbase Wallet and the Yellow Card app.
Both partners expect to “increase economic freedom” in many of these countries, whose economies have suffered from high inflation and dependence on remittances, and the lack of a modern financial system much sought after by younger generations. As they state in their press release:
Young people are more likely to recognize the benefits of crypto: more than seven in ten crypto owners worldwide (72%) are younger than 34 years old.
Their plan to make the global financial system ‘more accessible’
To achieve access to a more modern and global financial system, starting in February 2024, they will facilitate access to USDC on Base for cheaper rates and faster transactions than traditional wire transfers.
In the Coinbase Wallet, users can buy USDC directly from their Wallet app and send USDC to messaging and social media apps at no cost, as they noted:
Coinbase Wallet users can easily send USDC for free on any platform where they can share a link, including messaging apps like WhatsApp, iMessage, and Telegram, and via popular social media apps and email.
Users of the Yellow Card platform can purchase and transfer USDC on Base via the L2 blockchain, taking advantage of cheaper rates and easy access to the stablecoin.
Chris Maurice, co-founder and CEO of Yellow Card, expressed his excitement in an X-post (formerly known as Twitter). Maurice is optimistic about the future of the partnership and the solutions it can bring to African people and businesses.
More than excited to bring @muntbasis to Africa! 🎉🌍
Stablecoins like USDC solve real problems for real people and companies on the continent.
Of @geelkaart_appWith Coinbase’s regional expertise and Coinbase’s global brand and infrastructure, we will empower the next billion people. https://t.co/9DOgZ4TKMr
— Chris Maurice⚜️ (@chrismaurice) January 11, 2024
The partnership aims to protect the savings of users on the African continent from “unstable currencies” and economic volatility due to high inflation rates of up to 18.5%.
They offer lower transfer fees, with the maximum fee being 2%. In addition to providing access to the global financial system to small and medium enterprises (SMEs) by allowing merchants to set up a wallet in less than a minute, thereby increasing their growth.
In summary, the partnership between Coinbase and Yellow Card will expand solutions for people and businesses in twenty African countries by making the global financial system more accessible.
Coinbase (COIN) is currently at $132.85 on the daily chart. Source: COINUSD on Tradingview.com
Featured image from Unsplash, chart from TradingView.com
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