Yellow Card Partners with Visa (V.US) to Accelerate Africa's Adoption of Stablecoins

The Zhitong Finance App learned that the cryptocurrency exchange Yellow Card Financial has signed an agreement with payment giant Visa (V.US) to promote the use of stablecoins for cross-border payments in emerging markets. Yellow Card, founded in 2016, wants to promote stablecoins in the approximately 20 African countries where it operates and use the ubiquitous Visa platform to cover its target markets.

Yellow Card co-founder and CEO Chris Maurice said the two companies will explore opportunities to streamline financial operations, enhance liquidity management, and enable faster and more cost-effective transfers.

“Visa sells products to almost every bank in the world, so it provides an opportunity to work with a wider range of financial institutions that can benefit the most from this technology,” he said.

Maurice said, “When you look at stablecoins, you'll find a lot of exciting things in the market, and all major payment companies are exploring ways to get into this space.”

He said Yellow Card plans to launch stablecoin transactions in at least one African market this year in partnership with Visa before expanding to other markets later. This move is due to the increasing penetration rate of digital technology in Africa, and countries such as Ghana, Kenya, South Africa, and Nigeria are formulating regulations in this field.

Yellow Card senior legal adviser Edline Murungi said that Kenya's draft legislation, the Virtual Asset Service Provider Act, is the most advanced bill in Africa because it distinguishes between stable assets and speculative assets and recognizes various use cases.

Murungi said, “These use cases will really change the entire industry. If other countries follow suit, then Kenya will be the center of much digital asset activity.”

According to the Yellow Card, Mauritius became the first African country to enact such a law in 2021, while Botswana issued its first license in 2022. Six countries and the Central African Economic and Monetary Community have enacted relevant legislation.