Coinbase lands in Africa, thanks to the new partnership with African stablecoin exchange Yellow Card. African users will be able to purchase USD Coin (USDC) based on Base, directly from the Coinbase Wallet app.
Summary
Coinbase expands in Africa: the partnership with stablecoin exchange Yellow Card
The US crypto-trading platform Coinbase continues its expansion, this time landing in Africa and conquering a total of 20 countries across the continent.
In order to succeed in this mission, Coinbase has chosen Yellow Card as a partner, the leading African stablecoin exchange.
With a blog post, the crypto-exchange stated its intention to bring the future of money to Africa, and, together with Yellow Card, Coinbase will offer millions of new African users the opportunity to access its Wallet app.
Specifically, what African users will be able to do is purchase the USD Coin (USDC) stablecoin directly in the Coinbase Wallet app, starting from February. This way, they will be able to easily send USDC without fees on any platform where it is possible to share a link, including messaging apps like WhatsApp, iMessage, and Telegram, as well as through popular social media apps and emails.
Not only that, on the Yellow Card platform, users can also purchase USDC on Base, benefiting from cheaper payments and transfers through the L2 blockchain and easy access to one of the leading dollar stablecoin offerings.
Coinbase brings the future of money to Africa with Yellow Card exchange
The new partnership with Yellow Card will allow access to the Coinbase Wallet app for residents of 20 countries in Africa, which represent more than half of the population of the entire continent.
Many of these countries have high inflation and depend on remittances. That’s why the use of USDC could bring, according to Coinbase, an increase in economic freedom, contributing to the creation of a modern financial system.
Not by chance, the US crypto-exchange states that in Africa inflation is at 18.5%, while cryptocurrency usage and ownership rates have increased in recent years. It is estimated that in countries like Nigeria and South Africa, respectively 47% and 22% of adults owned or used cryptocurrencies in 2022.
Furthermore, the fees offered for USDC transfers in the Coinbase and Yellow Card formula will be much lower compared to banking fees. And so, instead of relying on remittances with transaction fees of 3% – 6%, African users will be able to transfer USDC with fees of 2% and take advantage of the transaction speed offered by Base.
The “Go Broad, Go Deep” strategy
Announced in mid-February 2022, Coinbase’s “Go Broad, Go Deep” strategy is the foundation for its international expansion, with the goal of offering its crypto services worldwide.
In this second week of 2024, Coinbase is adding a total of 20 African countries to its list, offering them access to its Wallet and the exchange of USDC on Base.
Recently, however, in this just started 2024, Coinbase has also announced its intention to find a solution to expand its derivatives offering in Europe.
Apparently, the US crypto-exchange seems to be about to acquire a MiFID-authorized entity (Markets in Financial Instruments Directive) based in Cyprus.
