Block, through its bitcoin developer platform, TBD, has joined forces with African crypto exchange, YellowCard, to enable access to a network of fiat on-and off-ramps as well as Bitcoin-based payments across 16 African nations.
According to the shared press release, the objective behind the partnership is to increase the accessibility and affordability of cross-border payments and liquidity exchanges while offering compliant cross-border payments and fiat off-ramps.
As we heard from many speakers at our Currency of Freedom event, the need for low-fee, fast, cross-border payments is essential. The rise in remittances in Sub-Saharan Africa shows how this need is only becoming greater. pic.twitter.com/3qFX79jDlD
— Block (@blocks) December 16, 2022
TBD offers APIs and developer services that simplify the process of incorporating functionality that facilitates these transactions in real-time for end users within the apps developed. YellowCard will act as a launch partner for both the Web5 protocol and the tbDEX liquidity network.
Web5 is based on the assumption that Web3, the idea of building a decentralized web with blockchain technology and cryptocurrencies, has the right intentions but is using the wrong tools. The tbDEX protocol aims to bridge the gap between the fiat and bitcoin worlds given that most people still receive their paychecks in fiat currency and pay taxes in fiat currency.
Cross-border payments within Africa can be subject to fees of nearly 10% and take several days to process using the available systems and this is the premise for the solution. In March 2023, TBD and Yellow Card completed a successful proof-of-concept for real-time payment rails from the United States to Ghana, Nigeria, and Kenya.
In the background, TBD provides API(s) and developer services that abstract away the complexity and make it easy for app developers to embed functionality that enables these transactions to happen in real time for their end consumers. The remittance process allows senders to initiate payments in USD while recipients can receive the equivalent amount in local fiat currency which can be deposited directly into their bank accounts or mobile money wallets like M-PESA and MTN. In the background, TBD converts the USD into Bitcoin or stablecoins and facilitates the exchange between digital assets and local fiat currencies via partners that create liquidity between digital assets and local fiat currencies.
Recipients also have the option to retain their value in either Bitcoin or USD stablecoins which could be particularly advantageous if they live in regions that are affected by local currency volatility or hyperinflation. Where the recipient wants to cash out, TBD facilitates these exchanges via its fiat off-ramps accomplished in partnership with a value chain of regulated, compliant entities.The press release emphasized the potential benefits of this feature.
The next objective for TBD is to create decentralized identity, trust, and transaction protocols that will facilitate the emergence of decentralized and trusted exchanges.
As one of TBD’s initial partners, YellowCard will provide worldwide payment options and fiat off-ramps for end users enabling them to send payments in either USD or Bitcoin and receive payments in local fiat currencies.
“We’re thrilled to work with TBD and the Block team on tbDEX and their global payments initiatives,” said Chris Maurice, CEO and co-founder of Yellow Card.
“The international payments space, especially in Africa, is in dire need of the innovative solutions we are building together, and this is the culmination of the vision behind Block’s initial investment in YellowCard in 2021.”
Wallets, fintech applications or liquidity platforms looking to connect with TBD are encouraged to contact [email protected].
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