Coinbase, the U.S. cryptocurrency exchange, has revealed plans to broaden access to its products in 20 African countries.
In an announcement, Coinbase stated that users in these selected African countries will have the capability to ‘purchase USDC directly in our [Coinbase] Wallet app starting in February.’
This expansion is made possible through a partnership with Yellow Card, a platform that focuses on stablecoins in Africa.
YellowCard exchange is available in the following countries so far:
- Cameroon
- Kenya
- Nigeria
- South Africa
- Botswana
- Rwanda
- Tanzania
- Ghana
- Zambia
- Uganda
- Gabon
- Malawi
- Benin
- Burkina Faso
- Cote d’Ivoire
- Mali
- Togo
- DR Congo
- Congo
- Gabon
In addition, users on the YellowCard platform will gain the ability to acquire the stablecoin USDC on the Ethereum layer two (L2) chain, Base. Coinbase asserts that this arrangement aims to benefit African users, particularly those in countries affected by inflation, by offering more cost-effective payments and quicker transfers.
“This partnership with its emphasis on USDC will increase economic freedom in places that have lacked it, and help stand up a modern financial system where one hasn’t existed,” the crypto exchange said.
According to Coinbase, the collaborative effort has the potential to improve economic freedom for African users by enabling them to send remittances with fees not surpassing 2%. Presently, many Africans sending funds to their families incur fees ranging between 3% and 6%.
Furthermore, the partnership, through facilitating access to USDC, is poised to connect small and medium enterprises (SMEs) in Africa to the global financial system effectively.
Coinbase characterizes its collaboration with Yellow Card as part of its ‘Go Broad, Go Deep’ strategy for compliant international expansion. This approach not only facilitates Coinbase’s entry into markets with lower economic freedom, but also aligns with the company’s commitment to engage closely with local payments regulators in more mature markets.
A few questions have been raised about the partnership and how that would work. At the same time, questions about regulation for Coinbase products in Africa have been asked by the community.
BitKE has reached out to Coinbase on the matter and we await their response.
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