Empowering Africa’s Economy: Coinbase and YellowCard’s New Partnership
In a groundbreaking move set to transform the financial landscape of Africa, Coinbase, the renowned U.S. cryptocurrency exchange, is teaming up with YellowCard, the largest and only licensed stablecoin exchange on the continent. This partnership aims to usher in a new era of financial inclusivity, accessibility, and affordability, especially in countries where the need for faster, cheaper, and more reliable financial transactions is paramount.
Addressing Africa’s Financial Challenges
We're excited to announce that we've partnered with Coinbase to expand and simplify access to USDC and digital assets in Africa. ✨
Many African countries grapple with soaring inflation rates, reaching 18.5%. In response, crypto adoption has steadily risen, with countries like Nigeria and South Africa witnessing significant increases. By offering USDC access, Coinbase and YellowCard aim to safeguard against economic volatility caused by unstable local currencies.
Revolutionising Remittances
Remittances are crucial in many African economies, accounting for up to 20% of GDP. Traditionally, these transactions incurred hefty fiat transfer fees of 3% to 6%, taking days to complete. With this partnership, users can now send remittances with maximum fees of just 2%, transferring funds in minutes or seconds rather than days.
Unlocking Opportunities for SMEs
Small and medium-sized enterprises (SMEs) form the backbone of African economies but often face hurdles when opening USD or Euro accounts. The introduction of USDC effectively grants SMEs access to the global financial system, enabling cross-border growth. Setting up a Wallet takes less than 30 seconds, making it easier for merchants to join the digital economy.
Embracing Youthful Enthusiasm
Africa boasts one of the youngest populations globally, and the partnership recognises that young people are more likely to embrace cryptocurrencies. Over 70% of crypto owners worldwide are under 34 years old. This demographic shift aligns perfectly with the desire for swift, borderless financial transactions – something traditional financial institutions often fail to deliver.
Leapfrogging Legacy Systems
As Africa skipped over desktop computers to embrace mobile phones, it is poised to leapfrog the outdated legacy financial system. This forward-thinking approach enables the continent to transition seamlessly to a modern financial ecosystem of speed, affordability, and decentralisation.
Coinbase’s Strategic Approach: “Go Broad, Go Deep”
Crypto is here to stay — helping drive a more open, accessible, and global financial system.
The Coinbase and Yellowcard partnership represents a significant step in Coinbase’s “Go Broad, Go Deep” strategy. Coinbase aims to bring more than one billion people into cryptocurrencies by fostering compliant international expansion and establishing clear rules and partnerships. The “Go Broad” approach addresses markets with low economic freedom, while the “Go Deep” aspect involves close engagement with local payments regulators in more mature markets.
Yellow Card’s Role in Transforming Africa’s Financial Landscape
Stablecoins like USDC solve real problems for real people & businesses on the continent.
With @yellowcard_app's regional expertise and Coinbase’s global brand and infrastructure, we will empower the next one billion people. https://t.co/9DOgZ4TKMr
YellowCard’s extensive network of payment methods across 20 African countries, combined with Coinbase’s global reach, promises to empower Africans and enable them to participate in the future of finance. Chris Maurice, Co-Founder and CEO of Yellowcard expressed optimism about the partnership’s potential to transform the financial landscape: “Together, by combining Yellowcard’s regional expertise with Coinbase’s global brand and infrastructure, we will empower the next one billion people across Africa to participate in the future of finance.”
Conclusion
In conclusion, the Coinbase and YellowCardpartnership signifies a pivotal moment in Africa’s financial evolution. By providing access to USDC and revolutionising financial transactions, this collaboration promises to enhance economic freedom, reduce inequality, and drive prosperity across the continent. Africa is poised to embrace the future of money, and Coinbase and YellowCard are leading the way.
