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Coinbase Boosts African Finance with Yellow Card Partnership

Key Takeaways
  • Coinbase partners with Yellow Card to expand crypto access in 20 African countries, fostering financial independence
  • Coinbase's Wallet app enables direct USDC purchases in Africa through Yellow Card, facilitating affordable and speedy transactions
  • Lower remittance fees to 2% aiming to empower individuals and small businesses, promoting economic development in Africa
13-Jan-2024 By: Simran Mishra
Coinbase Boosts Afri

Coinbase Breaks Barriers and Targets Financial Inequalities in Africa

Coinbase, the leading U.S. cryptocurrency exchange, has announced a strategic partnership with Africa-focused crypto exchange Yellow Card. This move aimed at expanding its global reach and encouraging financial independence. This collaboration is set to unlock access to Coinbase's products in 20 African countries, opening up new avenues for economic empowerment and financial freedom on the continent.

Yellow Card Partnership Strengthens Coinbase

On January 11, 2024, a new partnership was announced to make it easy for people in certain African countries to buy the stablecoin USDC directly through Coinbase's Wallet app. This collaboration focuses on enhancing transactions on the Ethereum layer two (L2) chain Base using Yellow Card's stablecoin platform. It's a big deal for residents in countries dealing with high inflation, as it ensures cheaper payments and quicker transfers.

One key focus of this partnership is Coinbase's commitment to leveraging USDC to boost economic freedom in regions with a history of limitations. The cryptocurrency exchange sees this collaboration as a driving force for creating a modern financial system in areas where such infrastructure has been missing.

Coinbase claims that by using Yellow Card's platform, people in Africa can send remittances with fees as low as 2%, a significant decrease from the usual 3% to 6%. These cost savings are anticipated to make a big difference for individuals and small businesses, breaking free from the usual financial limitations and creating positive impacts beyond the traditional rules.

This partnership between Coinbase and Yellow Card is a big deal for small and medium enterprises (SMEs) in Africa. It helps them connect to the global financial system by providing access to USDC. This collaboration aims to make cross-border transactions for businesses smoother, promoting growth and economic development. By making remittances and payments easier, Coinbase and Yellow Card are playing a role in bringing positive changes to the African economic landscape.

"Go Broad, Go Deep" Strategy 

Coinbase is expanding its presence in Africa as part of its broader strategy called "Go Broad, Go Deep," which focuses on compliant international expansion. This strategy allows Coinbase to enter markets with historically low economic freedom, emphasizing its commitment to working closely with local payment regulators in more developed markets. The company's multifaceted strategy reflects its nuanced understanding of the diverse global landscape and dedication to promoting responsible cryptocurrency adoption.

Coinbase's expansion into Africa is more than just a business move, it marks a big change in how we see crypto exchanges. Now, they're seen as important players in tackling financial inequalities worldwide. Working with Yellow Card shows how blockchain can really make a difference in bringing financial inclusion and economic empowerment to areas that have long struggled with systemic issues.

Conclusion

Coinbase's strategic partnership with Yellow Card marks a pivotal moment in the evolution of cryptocurrency exchanges. By expanding access to its products in Africa and prioritizing financial freedom, Coinbase is not only establishing itself as a global leader but also contributing to positive socio-economic change on the African continent. This collaboration is a testament to the potential of cryptocurrencies to reshape traditional financial systems and uplift communities, emphasizing the profound impact that responsible crypto adoption can have on a global scale. 

Also read - Worldcoin is Being Widely Adopted in India Even After its Departure

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