Credit card giant Visa has partnered with African stablecoin payment provider Yellow Card Financial to accelerate the adoption of digital dollars across the African continent, highlighting the growing synergy between traditional payment networks and cryptocurrency solutions.
According to Bloomberg on Thursday, the two companies have signed an agreement to promote stablecoins for cross-border payments in emerging markets operated by Yellow Card. Yellow Card plans to launch stablecoin transactions with Visa in at least one African country this year and expects to expand further by 2026.
Chris Maurice, co-founder and CEO of Yellow Card, stated that this collaboration will focus on enhancing financial operations, improving liquidity management, and achieving more cost-effective fund transfers.
According to a report by Chainalysis, the overall cryptocurrency usage in Sub-Saharan Africa is expected to see a slight increase in 2024, but the adoption of stablecoins is growing at a faster pace. This trend is largely driven by limited access to dollars and ongoing foreign exchange crises in several countries.
Yellow Card is Africa's first licensed stablecoin payment operator and also a cryptocurrency exchange. The company launched in Nigeria in 2019 and currently operates in 20 countries, having processed over $6 billion in transactions according to its website data.
Regarding stablecoins, Chris stated, "All major payment companies are exploring ways to enter this space."
Stablecoins pegged to the dollar, such as USDT and USDC, have gained significant traction in Africa. The two largest economies in Africa, Nigeria and Ethiopia, have seen substantial growth in retail cryptocurrency adoption.
Chainalysis noted in its report, "Stablecoins currently account for about 43% of the total transaction volume in the region." The report analyzed cryptocurrency usage from July 2023 to June 2024.
USDC issuer Circle has identified Africa as an important market for digital dollars. In April, the company partnered with African payment provider Onafriq to pilot USDC settlements in 40 countries.
Related: The Pacific nation of Nauru establishes a cryptocurrency regulatory body through legislation
Original article: “Yellow Card Partners with Visa to Accelerate Digital Dollar Adoption in African Countries”
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