For several years, cryptocurrency in Africa was closely associated with Bitcoin (BTC). Today, that story has reversed, as companies like Yellow Card, a cryptocurrency exchange functioning in Africa, vividly illustrate this change.
In an exclusive interview with BeInCrypto, Yellow Card co-founder and CEO Chris Maurice discloses how the platform is establishing a pan-African stablecoin network to surpass conventional finance (TradFi). This is occurring amidst increasing regulatory clarity, collapsing fiat systems, and a remittance revolution.
Stablecoins Are Transforming Africa’s Financial Landscape
The pan-African exchange operates in more than 20 markets, and according to Maurice, stablecoins now represent over 99% of its transactions. This positions Yellow Card as an indicator of what could be the most groundbreaking trend in the financial landscape of emerging markets.
“When we initially launched Yellow Card in 2019, individuals were solely purchasing Bitcoin. Currently, the most sought-after asset is Tether (USDT),” Maurice informed BeInCrypto.
Interestingly, necessity, rather than speculation, has propelled this transformation. Africa leads the globe in peer-to-peer (P2P) crypto trading volume. However, in contrast to global crypto hubs seeking volatile gains, Africans are opting for stablecoins for financial survival.
Local currencies are diminishing under inflationary stress in nations like Nigeria, which ranks second globally in crypto adoption (according to Chainalysis). Stablecoins provide a dependable store of value and efficient means of cross-border transactions.
This is particularly vital in a region with $48 billion in yearly remittances and ongoing banking obstacles.
“Stablecoins are addressing practical financial service obstacles in Africa. Individuals aren’t enamored with the technology. They require faster, cheaper methods to transfer funds to survive and prosper,” Maurice elaborated.
Infrastructure Designed for the Unbanked
Yellow Card has expanded beyond trading solutions. Its infrastructure incorporates mobile money platforms (like M-Pesa in Kenya) and local fiat currencies such as the Nigerian naira and Ghanaian cedi. As per the firm’s CEO, this facilitates the onboarding of users without bank accounts.
By managing compliance, currency conversion, and payments in-house, the company allows enterprises to function without grappling with unreliable local systems.
“Our goal is to enable businesses to invest, hire, and expand in emerging markets without the stress of infrastructure. We’ve established the back office [meaning] cybersecurity, AML, [and] data protection, so they can concentrate on growth,” he expressed.
The Regulatory Barrier Has Crumbled
Maurice also noted that African regulators have kept crypto in a state of uncertainty for years. In Yellow Card’s perspective, 2024 represented a pivotal moment.
“There is a growing regulatory momentum in Africa that is rapidly increasing. The dam has burst,” he remarked.
South Africa now categorizes crypto as a financial product. It has granted licenses to major exchanges such as Luno and VALR. Nations within the Central African Economic and Monetary Community (CEMAC), Mauritius, Botswana, and Namibia have followed suit with their own licensing structures.
Simultaneously, regulatory incubators are budding in Kenya, Nigeria, Rwanda, and Tanzania. Against this backdrop, Maurice emphasizes that Yellow Card has actively participated in drafting legislation in Kenya and endorses crypto regulations in Morocco.
Combatting the Informal Market
Nevertheless, challenges persist. In nations such as Ethiopia, Cameroon, and Morocco, outright bans have forced users underground into high-risk P2P networks. Yellow Card advocates for frameworks that create a fair competitive environment for compliant players.
“We encounter considerable competition from companies that do not uphold stringent AML standards…We only seek a level playing field,” he stated.
With $85 million in venture capital, Yellow Card is channeling funds into compliance and partnerships. This positions the company as the prime infrastructure provider for global entities seeking to enter African markets.
From Africa to Emerging Markets Globally
Cross-border payments present perhaps Yellow Card’s most compelling application. The co-founder of the company states that its stablecoin-powered networks are aiding businesses in minimizing working capital requirements, expanding into new regions, and accelerating hiring.
“We’ve had customers inform us that we’ve enabled them to expand into new countries and drastically lower their expenses. That’s genuine economic impact,” remarked Maurice.
The organization is not limiting itself to Africa. Its infrastructure stretches into other burgeoning markets, with a series of strategic alliances anticipated for 2025.
“Yellow Card has developed a series of straightforward solutions for companies from developed nations to penetrate complex, high-growth markets,” he noted.
The Conclusion of SWIFT?
One of the most audacious predictions from Yellow Card is its outlook for the next five years: the reduction of SWIFT and traditional international transfers entirely.
“As we survey the next five years, SWIFT is facing difficulties. In a decade, no one will be executing international wire transfers,” Maurice asserted.
Supported by enterprise-level security and regulatory rigor, Yellow Card garners attention from major firms such as PayPal and Coinbase exchange, which are seeking stablecoin collaborators in emerging markets.
“Stablecoins are already an established component of the financial infrastructure in Africa. CFOs and treasurers in traditional sectors are now regularly utilizing them to store and transfer value,” he added.
Africa’s cryptocurrency market remains modest compared to global titans. However, as the world transitions from speculation to practicality, the continent’s disjointed financial systems may provide insight into cryptocurrency’s most significant use case: economic empowerment. For Yellow Card, the objective is clear and increasingly pressing.
“We’ve created a company for durability and expansion. The adoption of cryptocurrency in Africa is synonymous with the adoption of stablecoins,” Maurice concluded.
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