The growing market for stablecoins in African cross-border trade is the focus of this edition of Business Day Spotlight.
Host Mudiwa Gavaza is joined by Kamogelo Mosime, country manager at Yellow Card.
Cryptocurrency platform Yellow Card specialises in stablecoin exchange, payments and remittances.
Mosime outlines the development and use of stablecoins in SA and rest of Africa.
A stablecoin is a cryptocurrency designed to maintain a stable value by pegging it to another asset, such as real-world fiat currency. The most common of these is the dollar, and examples include USD Coin (USDC) and Tether. The other main peg for stablecoins is commodities such gold or oil.
According to the crypto executive, retail customers have been making crypto payments for everyday goods and services for years. That said, the platform’s main speciality is sending and receiving funds across boarders faster and cheaper than traditional banks.
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While Yellow Card started off as a way for people to make crypto payments in everyday life, its current growth is anchored in cross-border remittances.
Stablecoins are now being used as a way to send and received money across borders that is faster and cheaper than traditional banking services.
Yellow Card says the most popular stablecoins used in Africa are USDC by Circle and Tether’s USDT. The service is available in 20 countries on the continent.
Yellow Card also gives its employees the option to be paid in stablecoin.
Through the discussion, Mosime highlights trends in the use of stablecoins in Africa; Yellow Card’s strategy for fast and cheap currency remittance; evolution of the business over time; and business performance in SA.
Business Day Spotlight is a MultimediaLIVE Production.
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