• Saturday, April 20, 2024
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Stablecoins will gain prominence in Africa — Fintech

Stablecoins will gain prominence in Africa — Fintech

Stablecoins will become one of the most preferred digital assets in Africa, Yellowcard, an exchange platform for cryptocurrencies, has disclosed.

The fintech disclosed this while announcing the introduction of its USD Coin (USDC), a digital stablecoin on the stellar network to improve cross-border payments, remittances, and treasury management globally.

Read also: eNaira ghost haunts stablecoin

“We are thrilled to bring USDC on Stellar to our users. This is a giant leap forward for global payments, making it easier, faster, and more affordable for people around the world to access and utilise digital dollars,” Chris Maurice, Yellow Card’s Chief Executive Officer, said in a statement.

Stablecoins are a type of cryptocurrency designed to address the issue of volatility among traditional cryptocurrencies. The preference for stablecoins hinges on the fact that they are tied to the dollar’s value, which protects it against inflation and eliminates the fear of volatility recorded by other digital assets.

The total market capitalisation for stablecoins was $165 billion as of January 2024, according to CoinMarketCap. This is a 19 percent increase from the $138.4 billion reported in January 2023 and lends credence to its growing importance in the crypto ecosystem, with stablecoins now occupying 15 percent of the total ecosystem.

Read also: Nigeria, 19 other countries gain USDC access as Coinbase partners Yellow Card

Yellow Card added that stablecoins solve the problem of hidden charges, which is a challenge many people face in Africa. It stated that users will benefit from cheaper charges by transferring USDC to other USDC-supported exchanges.