The top US-based crypto exchange platform, Coinbase, is venturing into Africa after announcing that it will be teaming up with Yellow Card, a leading African stablecoin exchange.
In a new blog post, Coinbase says that as part of its plan to reach 20 countries on the continent, it’s partnering up with Yellow Card to provide millions of people access to prominent dollar-pegged crypto assets, such as USDC.
“Through our new partnership with Yellow Card, one of Africa’s leading stablecoin exchanges and a Coinbase Ventures portfolio company, millions of users will gain access to USDC on Base with fast, reliable transactions at fees of less than half the cost of fiat transfers.”
According to Coinbase, since many of the nations either have high inflation or are dependent on remittances, the partnership will help them lay down the foundations of a modern decentralized financial system.
Additionally, the cryptocurrency exchange predicts that the African market may be more receptive to virtual currencies due to its younger demographic.
“Africa is by far the youngest continent. Young people are more likely to recognize the benefits of crypto: more than seven in 10 crypto owners globally (72%) are under age 34. Consumers who have grown up with mobile phones and apps expect to be able to move their money with the speed, reach, and autonomy of the internet.
In countries with legacy financial institutions, those institutions just can’t deliver; even in the US, 52% of young adults are actively seeking alternatives to the current financial system. And in many countries hosting our partnership, there is hardly any system at all.
Just as parts of the world skipped over desktops and went straight to phones to access the internet, they are now able to skip over an outdated, legacy financial system bogged down by slow speeds, high fees and geographic borders, straight to one that is up to date, global, and decentralized.”
Earlier this week, Coinbase announced that it would also be looking to expand into the European Union (EU) by obtaining a license to launch crypto derivatives.