A significant milestone in the African cryptocurrency industry was marked on Thursday, as Yellow Card became the first fintech in Africa to launch PayPal USD (PYUSD).
This new stablecoin from PayPal, issued by Paxos, will open new horizons for digital financial transactions between Africa and the United States.
Crypto adoption in Africa is booming – according to a report by Chainalysis, between 2020 and 2021, the crypto market on the continent grew by over 1200% (to $106 billion). Nigeria, Morocco, and Kenya rank in the global top 20 for crypto adoption. A large part of the reason for this growth can be attributed to stablecoins, which have gained popularity with both beginners and seasoned traders due to their ease of use and greater stability.
In the last few years, Yellow Card has become the fastest-growing cryptocurrency company in Africa, with a presence in 20 countries, showing no signs of slowing down as Africa is the prime market for rapid crypto growth.
In August, PYUSD launched in the US market and since then has been making waves in the industry. PYUSD is a fully-backed USD stablecoin with reserves held 100% in US dollar deposits, US treasuries, and cash equivalents. PYUSD – and its reserves – are subject to strict regulatory oversight by the New York State Department of Financial Services meeting the highest standards of consumer protection.
CEO and Co-Founder of Yellow Card, Chris Maurice, said this partnership emphasises the very essence of the company where innovation, financial inclusion, and progress collide.
“This moment is a testament to the relentless pursuit of innovation and financial inclusion that Yellow Card stands for. Launching PYUSD on our platform is not just a business achievement, it’s a commitment to our mission of making digital currencies accessible to everyone in Africa,” he said.
PYUSD’s availability on Yellow Card means customers can smoothly transfer funds to and from the US. This is because PayPal and Venmo users in the US can accept PYUSD and exchange for the dollar. Essentially, it removes longer processes while providing security, stability, and speed – while still being cost-effective and less expensive.
The collaboration also introduces newfound global trading opportunities and access for customers based in Africa as customers can seamlessly buy, sell, and transfer PYUSD on the Yellow Card platform without the need for a PayPal account.
Promoting financial inclusion, and education and bridging the gap between traditional and digital financial systems in Africa is a fundamental component of our shared vision. This partnership will no doubt empower individuals and businesses across the continent, allowing them to participate in the global economy more effectively.
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