Coinbase partners with Yellow Card to boost USDC usage in Africa

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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.

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