As Coinbase points out, fiat transfer fees can be as high as 3% to 6%. This partnership with Yellow Card will see users pay up to 2% per transaction.
One of the benefits of cryptocurrency and blockchain, concepts that break these barriers, is that they are accessible to people all over the world. Therefore, projects and companies in the blockchain space often serve an international audience with all kinds of needs. Now, Coinbase, one of the biggest companies in the blockchain space, has announced a new partnership with stablecoin exchange Yellow Card. This partnership is designed to help Coinbase expand into African markets and build a presence there.
Coinbase’s New Partnership
The partnership was officially announced on January 11, 2024, where Coinbase emphasized its commitment to serving people in emerging economies. As part of our efforts moving forward, we will be working with Yellow Card to launch our products in 20 African countries. These countries account for 52% of Africa’s population, and this partnership will “enable them to access USDC on Base with fast, reliable transactions at less than half the cost of fiat transfers.”
USDC tokens will be available for purchase through the Coinbase Wallet app starting in February. These tokens can be obtained more cheaply using Base, a layer 2 platform.
Additionally, you can send USDC fee-free on any platform of your choice just by using the link. Coinbase clarifies that this includes messaging apps such as WhatsApp, iMessage, and Telegram, as well as social media sites.
As Coinbase explains, having this kind of option for residents of these countries benefits them in several ways. First, many of these countries are experiencing high inflation rates and are reliant on remittances. Cryptocurrencies, including stablecoins, have been found to combat inflation and make the process of sending money easier. Users also end up paying less in terms of transfer fees. As Coinbase points out, fiat transfer fees can be as high as 3% to 6%. Through this partnership with Yellow Card, they will pay up to 2% on each transaction, which will help you save a lot of money.
There is also a commercial aspect. Small and medium-sized businesses are known to provide economic growth and jobs around the world, but businesses in Africa face very unique challenges. In particular, many people find it difficult to access dollar and euro accounts, which excludes them from international markets. But with this partnership, they can open these accounts in less than a minute.
Many of the countries where these services will be launched have already seen healthy cryptocurrency adoption rates, so these kinds of initiatives would be welcome. Along with this, there is a huge number of young people on the continent, and I think Coinbase will also make this project a success.
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