Increasing Financial Freedom
The leading crypto exchange Coinbase has announced that it is expanding access to its products in 20 African countries. Through a partnership with the Africa-focused crypto exchange Yellow Card, Coinbase users in these countries will soon be able to purchase USDC directly through the Coinbase Wallet app. The collaboration aims to provide cheaper payments and faster transfers, benefiting users in inflation-hit countries. Furthermore, Coinbase believes that this partnership will increase financial freedom in countries where it is lacking.
Reducing Remittance Fees
One of the key benefits of the Coinbase-Yellow Card partnership is the potential to reduce remittance fees for African users. Currently, many Africans pay fees ranging from 3% to 6% when sending money to their loved ones. However, with access to USDC through the partnership, these fees can be limited to 2%, providing a more affordable option for remittance.
Connecting African SMEs to the Global Financial System
In addition to reducing remittance fees, the Coinbase-Yellow Card partnership will also connect African small and medium enterprises (SMEs) to the global financial system. By providing access to USDC, SMEs in Africa can participate in global transactions and expand their business operations internationally.
Compliant International Expansion
Coinbase’s partnership with Yellow Card aligns with its “Go Broad, Go Deep” strategy of compliant international expansion. By entering low economic freedom markets in Africa, Coinbase aims to extend its reach and provide its services to users in underserved regions. This strategy complements Coinbase’s close engagement with local payment regulators in more mature markets, ensuring compliance and regulatory adherence.
Hot Take: Coinbase Expands into Africa, Boosting Financial Freedom
The recent announcement by Coinbase to expand access to its products in 20 African countries is a significant move that can enhance financial freedom in the region. By partnering with Yellow Card and offering USDC, Coinbase aims to provide cheaper payments, faster transfers, and reduced remittance fees for African users. Additionally, this partnership will connect African SMEs to the global financial system, opening up new opportunities for growth and expansion. Coinbase’s entry into these underserved markets aligns with its strategy of compliant international expansion and showcases its commitment to providing crypto services to users worldwide. This move not only benefits African users but also contributes to the global adoption and accessibility of cryptocurrencies.
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