Coinbase and Yellow Card have recently partnered to distribute Coinbase’s products in Africa. The exchange will initially extend its service provision to twenty countries across the country.
Yellow Card stands as a leading stablecoin exchange in Africa. Its collaboration with Coinbase will benefit millions of African users by allowing them to access USDC on Base with reliable and fast transactions.
These transactions will be facilitated at a fee that is 50% cheaper than the cost of fiat transfers. Here is an overview of the benefits:
- Coinbase Wallet holders in the 20 nations (accounting for 52% of Africa’s population) will be able to buy USDC directly from the Wallet starting February 2024.
- Coinbase Wallet holders can also send USDC without any fee on platforms where links can be shared, including iMessage, Telegram, WhatsApp, etc.
- Yellow Card will also allow users to buy USDC on Base for cheaper transfers and payments via the L2 blockchain.
Given the popularity of Yellow Card in the continent, the announcement made waves among crypto enthusiasts. Many users looked for an extensive Coinbase exchange review to learn more about the platform.
Notably, most of the 20 nations are remittance-dependent and have high inflation. The collaboration focuses on USDC to increase economic liberty across regions lacking it. The parties will establish a financial system with the following:
- Remittances: The partnership will help users pay a maximum of 2% remittance fees instead of the usual 3% to 6%.
- Savings: Africa suffers from an 18.5% average inflation rate. Nations like South Africa and Nigeria have seen an increase in crypto ownership in the past year, with 22% and 47% of adults owning crypto in 2022.
- Daily commerce: SMEs account for 9 in 10 businesses around the globe. However, they face issues opening Euro and USD accounts in Africa that restrict their cross-border growth. With prompt USDC access, SMEs can allow merchants to set up a Wallet in under 30 seconds.
This latest development is part of Coinbase’s Go Broad, Go Deep mission. Coinbase is attempting to develop a flexible financial structure in order to promote the digital asset globally, as crypto is the future of money.