Coinbase partners with Yellow Card to boost USDC use in Africa By Investing.com

SAN FRANCISCO – Coinbase (NASDAQ:), a leading cryptocurrency exchange, has announced a strategic partnership with Yellow (OTC:) Card, a financial service provider in Africa, to expand the usage of the (USDC) across 20 African countries, starting from February. This collaboration will integrate Yellow Card’s payment systems into Coinbase’s L2 Base platform, aiming to reduce transaction fees to a maximum of 2%, significantly lower than traditional fiat transfer rates of up to 6%.

The initiative is a response to the unique financial challenges faced by Africa’s young and rapidly growing population, which is currently underserved by conventional financial systems. High fees and inflation rates have been persistent hurdles for economic growth and financial inclusion in the region. By adopting USDC, a stablecoin pegged to the US dollar, the partnership aims to provide a more stable and cost-effective alternative for financial transactions.

This alliance is a key component of Coinbase’s larger goal to incorporate a billion people into the cryptocurrency ecosystem. The partnership with Yellow Card underscores Coinbase’s commitment to making digital currencies more accessible and useful in regions where the traditional banking infrastructure is limited or inefficient.

The use of USDC in Africa through this partnership is expected to empower individuals and businesses by providing them with more control over their finances and the ability to engage in the global economy with fewer barriers. This move aligns with the broader trend of cryptocurrency adoption in emerging markets, where digital assets are increasingly seen as a viable solution to longstanding financial challenges. Cryptocurrency uptake has been particularly strong in South Africa, Nigeria, Zimbabwe, Kenya, and Ghana. Moreover, the Central African Republic briefly made legal tender before transitioning to its own cryptocurrency initiative with Sango Coin.

This strategic move comes at a time when remittances are vital for developing nations’ economies—sometimes constituting over 20% of GDP—as noted by the World Bank. The partnership aims at catering to Africa’s predominantly young population by providing more accessible financial services suited for an evolving digital economy.

InvestingPro Insights

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