Coinbase Collaborates With Yellow Card, Strengthens Its Presence In Africa

The Coinbase crypto exchange cooperates with the Yellow Card in Africa. (Photo; Doc. Techbuild)

JAKARTA - Crypto company Coinbase has announced a strategic partnership with Yellow Card, a stablecoin exchange platform. The partnership, which was inaugurated on January 11, 2024, aims to strengthen Coinbase's position in the African market, spanning 20 countries representing more than half of the continent's population.

This collaboration focuses on providing easy access to USDC (USD Coin) through the Coinbase platform, offering efficient and economical transactions. Starting February, users in selected countries can buy USDC directly from the Coinbase wallet app, with additional profits in the form of reducing transaction fees through the use of layer-2 Base platforms.

The flagship feature of this collaboration is USDC delivery capability free of charge through various popular communication applications, including WhatsApp, iMessage, Telegram, and various social media platforms.

This initiative is designed to facilitate money transfers and offers a more affordable alternative to conventional methods that usually charge up to 3% to 6%. With this collaboration, transaction fees are expected not to exceed 2%, providing significant savings for users.

In addition, this initiative also targets support for small and medium enterprises (SMEs) in Africa that often face difficulties in opening international currency accounts. Through this partnership, SMEs can quickly open accounts in major currencies such as dollars and euros, eliminating one of the main barriers to global market participation.

Coinbase recognizes the importance of cryptocurrencies, particularly stablecoins, as a hedging tool against inflation and as a more efficient way of making money. The move supports an increasing trend of crypto adoption in some African countries and aims to empower the younger generation, which is a key demographic for the success of this project.

With Coinbase and Yellow Card joining, the partnership promises a new era of accessing wider finance, increasing economic empowerment, and acceptance of cryptocurrencies in the African region.