Coinbase, one of the world’s largest cryptocurrency exchanges, has joined forces with Africa’s Yellow Card to expand its services across 20 new African countries. The partnership aims to provide millions of users with access to USD Coin (USDC) stablecoin, fostering faster, cheaper, and more accessible transactions.
The announcement, detailed in a blog post by Coinbase, highlights the company’s commitment to addressing the unique financial needs of emerging economies. By collaborating with Yellow Card, a leading African stablecoin exchange and a Coinbase Ventures portfolio company, Coinbase aims to empower users with the benefits of USDC on its decentralized Layer 2 (L2) Base.
Coinbase Wallet Integration for Seamless USDC Purchases
The partnership’s immediate impact will be felt by Coinbase Wallet users in the 20 targeted African countries, representing half of the continent’s population. Starting in February, these users will have the ability to purchase USDC directly within the Wallet app. What sets this apart is the convenience of sending USDC without fees on various platforms, including messaging apps like WhatsApp, iMessage, Telegram, and popular social media apps and email.
Yellow Card’s platform will also play a crucial role in expanding access to USDC, providing users with cheaper payment options and transfers through the L2 blockchain. This move is particularly significant for countries facing high inflation rates and heavy reliance on remittances.
The emphasis on USDC is expected to bring economic freedom to regions that have struggled with financial instability. The initiative aims to protect savings from the impact of volatile currencies, with inflation rates reaching 18.5% across Africa. Additionally, the partnership seeks to revolutionize remittances by reducing fees from 3-6% to a maximum of 2%, ensuring faster transactions.
The benefits extend to small and medium enterprises (SMEs) in emerging economies, offering them the opportunity to access global financial systems through USDC. Setting up a Wallet in less than 30 seconds will enable merchants to engage in cross-border commerce seamlessly.
In regions where younger populations predominate, the partnership anticipates a positive response, as crypto ownership is more prevalent among individuals under the age of 34. With a focus on mobile accessibility and the decentralized nature of cryptocurrencies, the Coinbase and Yellow Card collaboration aims to leapfrog outdated financial systems and provide a modern, global, and decentralized alternative for millions in need.
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