Digital Inclusion: Coinbase and Yellow Card's Joint Venture to Reach the Unbanked

Digital Inclusion: Coinbase and Yellow Card’s Joint Venture to Reach the Unbanked

Time Stamp: January 16, 2024 12:00 AM
  • Coinbase has sought after Yellow, a renowned African fintech company, to extend its reach within Africa’s ecosystem.
  • Coinbase will offer a more economically viable solution for its features by partnering with a leading African fintech company.
  • Yellow Card is Africa’s first fintech organization to receive a license authorizing the exchange to offer stablecoin on/off ramp on the continent.

Africa has showcased its resilience and determination to become a dominant entity in the web3 franchise. Despite the 2023 crypto winter threatening to completely dissolve Africa’s growing web3 community, the region has maintained, if not improved, its digital asset adoption.

The region has presented an adequate example to its peers as nations like Nigeria and South Africa continue to evolve in their web3 journey. Furthermore, areas such as Kenya, Tanzania, and many more have opted to research the best possible ways to incorporate digital currency within their communities.

Amid this radiant ecosystem, Yellow Card, a renowned African crypto exchange, has played a vital role in promoting its growth. From expanding its reach throughout Africa to introducing new, more straightforward crypto-based mechanisms, Yellow Card has consistently strived to outpace its rival Flutterwave, Africa’s top crypto exchange.

To accomplish this feat, Yellow Card has recently partnered with Coinbase to expand access to the numerous products and services the crypto titan offers across 20 African countries.

Yellow Card partners with Coinbase to propel Africa’s digital asset adoption

Africa’s digital asset adoption rate has experienced a positive incline in the past few months. Regions like Nigeria have recently lifted their crypto ban and introduced a new blockchain policy to their ecosystems. In addition, the region has announced the launch of its stablecoin, cNGN Stablecoin, showcasing its government’s steady shift towards creating a favourable ecosystem for digital assets.

South Africa’s anticipated crypto regulatory frameworks inspired many others to shift their focus to the franchise. According to the Central Bank of SA, the crypto regulatory framework will streamline the region’s crypto trading volume, allowing the government to benefit. These trends have inspired others like Korea, Tanzania, Zambia, and Zimbabwe to rethink their verdict on digital assets and send out research teams to understand how digital assets can benefit their respective regions.

This positive trend has inspired many crypto-based organizations to continue their dependence on Africa. In recent developments, Coinbase has sought after Yellow, a renowned African fintech company, to extend its reach within Africa’s ecosystem.

Also, Read Block Inc.’s tbDEX Goes Live in Collaboration with Yellow Card.

Typically, Yellow Card is Africa’s first fintech organization to receive a license authorizing the exchange to offer stablecoin on/off ramp on the continent. Coinbase has sought to utilize this unique attribute to expand and simplify access to USD Coin Stablecoins.

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Coinbase Wallet integrates Yellow Card WIdget to extend its reach in Africa.[Photo/Medium]

To accomplish this feat, Coinbase has integrated the new Yellow Card widget, giving Coinbase Wallet customers access to the fintech’s extensive network of payment methods across 20 African countries. In addition, the partnership will overhaul Africa’s digital assets adoption rate exponentially. This strategy aligns with a 2023 report noting that despite Africa experiencing heavy losses due to the crypto winter, it still managed to showcase increased Stablecoin use. 

During the same period, African stability hit a point, causing several states to experience national protests regarding the high inflation rate. This prompted many to rely on the crypto market for stable and better alternatives. Thus giving rise to the high stablecoin use.

According to the African Fintech company, the Yellow Card Widget enhances the fintech’s existing Payment API. This feature has grown popular among African businesses and SMEs, allowing them to transact with their fiat currency and reducing the complexities most exchanges have.

Reshaping Africa’s digital asset adoption

Due to its vast features, Coinbase has maintained its current status as one of the top crypto exchanges. Recently, the crypto titan introduced a new feature allowing transfers via links from popular social media platforms like iMessage, Telegram, WhatsApp, Facebook, and Instagram. Unfortunately, Coinbase is the means to tackle specific issues and challenges regarding many African countries.

The high inflation rates and remittance dependency challenged the crypto titan to counter directly. Fortunately, Coinbase sought the aid of an entity already dominating the niche, Yellow Card. Coinbase will offer a more economically viable solution for its features by partnering with a leading African fintech company. The Yellow Card Widget and Coinbase Wallet will offer African customers several benefits.

For instance, with Coinbase’s extensive network and Yellow Card’s know-how of the African market, customers will experience convenient and affordable payment methods. The interaction will offer a range of features, including local bank transfers and mobile money, all within the convenience of their fiat currency.

In addition, Yellow Card customers will have an improved and stolen experience from Coinbase and a more secure environment for busing and selling virtual assets. Regarding features and tools, Coinbase surpasses Yellow Card, a bonus for local users. Despite this, Yellow Card will still manage the Know Your Customer (KYC) process due to its expertise in onboarding customers across Africa.

Also, Read Coinbase Exchange introduces its latest Layer2 network upgrade, the Base Blockchain network.

Chris Maurice, co-founder and CEO of Yellow Card, said, “We are thrilled to partner with Coinbase to bring the transformative power of Stablecoins to more people across Africa. Together, by combining Yellow Card’s regional expertise with Coinbase’s global brand and infrastructure, we will empower the next one billion people across Africa to participate in the future of finance.”

Coinbase seeks to integrate various cryptocurrencies and stablecoins like USD Coin Stablecoins. In doing this, Africa’s digital asset adoption will grow in rate and diversity, allowing African traders to interact with several assets. The crypto bull run is steadily underway and shows plenty of promise. Despite Bitcoin’s recent decline, other altcoins like ETher, Solana, and Chainlink have showcased a positive trajectory.

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