© Reuters
SAN FRANCISCO – Coinbase (NASDAQ:), a leading cryptocurrency exchange, announced a strategic partnership with Yellow Card, a financial services provider in Africa, to expand the use of USD Coin ( USDC) in 20 African countries, starting in February. This collaboration will integrate Yellow Card’s payment systems with Coinbase’s L2 Base platform, with the aim of reducing transaction fees to a maximum of 2%, significantly lower than traditional fiat currency transfer rates , which can go up to 6%.
This initiative is a response to the unique financial challenges faced by Africa’s young and rapidly growing population, which is currently underserved by conventional financial systems. High fees and inflation rates are persistent obstacles to economic growth and financial inclusion in the region. By adopting USDC, a stablecoin pegged to the US dollar, the partnership aims to provide a more stable and cost-effective alternative for financial transactions.
This alliance is a key part of Coinbase’s broader goal of bringing a billion people into the cryptocurrency ecosystem. The partnership with Yellow Card highlights Coinbase’s commitment to making digital currencies more accessible and useful in regions where traditional banking infrastructure is limited or inefficient.
The use of USDC in Africa through this partnership is expected to enable individuals and businesses to better control their finances and engage in the global economy with fewer barriers. The move is part of a broader trend of cryptocurrency adoption in emerging markets, where digital assets are increasingly seen as a viable solution to long-standing financial problems. Cryptocurrency adoption has been particularly strong in South Africa, Nigeria, Zimbabwe, Kenya and Ghana. Additionally, the Central African Republic briefly made bitcoin legal tender before moving on to its own cryptocurrency initiative with Sango Coin.
This strategic move comes at a time when remittances are vital to developing country economies and sometimes represent more than 20% of GDP, as highlighted by the World Bank. The partnership aims to meet the needs of Africa’s predominantly young population by providing more accessible financial services adapted to a rapidly evolving digital economy.
InvestingPro Insights
As Coinbase moves forward with its strategic partnership to expand the use of USD Coin in Africa, it is worth noting some key financial metrics and expert opinions that could influence the company’s trajectory . According to real-time data from InvestingPro, WP Carey Inc. (WPC), a company from a different sector but relevant for investors looking for stable financial performance, has a robust financial profile. WPC has a market capitalization of $14.55 Billion and a notable P/E ratio of 18.33, which adjusts to 23.68 over the trailing twelve months to Q3 2023. The Company’s Revenue Growth over the same period stood at an impressive 22.15%, with a gross profit margin of 92.39%.
InvestingPro’s advice highlights WP Carey’s impressive gross profit margins and its ability to maintain dividend payments for 26 consecutive years, which is a testament to its financial stability. Additionally, the company’s PEG ratio, which measures the relative trade-off between a stock’s price, earnings generated per share, and the company’s expected growth, sits at a low 0.43, indicating a sub -potential valuation based on short-term earnings growth expectations.
For investors interested in other insights and advice, InvestingPro offers a wealth of additional information. Currently, seven other InvestingPro tips are available to WP Carey Inc. and are accessible through an InvestingPro subscription. This subscription is currently on a special Cyber Monday sale, with up to 60% off. To complete this offer, use the coupon code ProW345 to get an extra 10% off a 2-year InvestingPro+ subscription. This could provide valuable guidance to those looking to diversify their portfolio with companies like WPC that demonstrate a strong financial foundation and growth potential.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.