Coinbase Partners with Yellow Card for African Expansion, Bringing Access to USDC

Coinbase, the leading US-based crypto exchange, is set to expand its reach into Africa through a strategic partnership with Yellow Card, a prominent African stablecoin exchange. In a recent blog post, Coinbase outlined its plan to reach 20 countries on the continent, leveraging the collaboration with Yellow Card to provide millions of users access to prominent dollar-pegged crypto assets, including USDC.

Partnership with Yellow Card:

Coinbase has teamed up with Yellow Card, a leading stablecoin exchange in Africa and a Coinbase Ventures portfolio company, to facilitate fast and reliable transactions of USDC on Coinbase. The collaboration aims to offer users access to dollar-pegged cryptocurrencies at fees lower than traditional fiat transfers.

Expansion Plan in Africa:

Coinbase envisions the partnership as a means to lay the foundations of a modern decentralized financial system in African nations. The initiative is particularly significant in regions facing high inflation rates or relying heavily on remittances.

Youthful Demographic Receptiveness:

The blog post highlights Africa's status as the youngest continent, with Coinbase predicting that the younger demographic may be more receptive to virtual currencies. Young people, globally, are recognized as being more inclined towards embracing cryptocurrencies, with 72% of crypto owners under the age of 34.

Skipping Legacy Financial Systems:

Coinbase draws parallels between the adoption of cryptocurrencies in Africa and the phenomenon where parts of the world skipped over desktops and went straight to mobile phones for internet access. The younger generation, accustomed to mobile technology, seeks financial systems that align with the speed, reach, and autonomy of the internet.

Coinbase's Global Expansion:

This move into Africa follows Coinbase's recent announcement of plans to expand into the European Union (EU) by obtaining a license to launch crypto derivatives.

The Coinbase and Yellow Card partnership reflects a strategic move to tap into the African market, offering access to dollar-pegged cryptocurrencies and contributing to the development of a more inclusive and modern financial ecosystem on the continent.