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Africa, Bitcoin, Bitcoin (BTC), Botswana, Central Bank of Nigeria, Chris Morris, Cryptocurrency Remittance, Kenya, Nigeria, South Africa, World Bank, Yellow Card
Nigerian cryptocurrency startup Yellow Card stated that its trading volume in the first eleven months of this year exceeded $165 million. This figure represents an increase of more than 1,840% over the remittances in the last six months of 2019.
The Yellow Card was launched in June 2019, enabling Africans at home and abroad to buy and sell cryptocurrencies in their native currencies through bank transfers, cash and mobile currencies. The service is mainly used for remittances, which is a multi-billion dollar industry in Africa.
Chris Maurice, co-founder and CEO of Yellow Card, told news.Bitcoin.com that Nigeria is the largest economy and most populous country in Africa, “accounting for 50% of our current trading volume, which is our most active market.”
The company has more than 35,000 businessmen in West African countries. Morris said that in Kenya and Cameroon, the implementation started in September after raising $1.5 million in funding, which was “exciting”, but did not provide data. In South Africa and Botswana, Yellow Card, which entered the market a few months ago, quickly added 30,000 suppliers.
“[The $165 million volume] Only include customers who bought bitcoin with fiat currency or customers who sold fiat currency. We will not increase our volume by treating every customer’s deposit and withdrawal as a transaction volume,” Maurice explained.
He stated that the cryptocurrency remittance business in Africa is “rapidly growing” and competition is intensifying. Morris boasted that the yellow card better maintained the lead in the game.
“Our goal is to become synonymous with African cryptocurrency. We believe that we are expected to achieve this goal in the near future. He said: “We have the best interest rates and liquidity on the African continent, and we want to ensure that everyone in Africa Can use this technology. “
Compared with legal remittances, password-based remittances are much cheaper and faster. For example, sending any amount of money through the Bitcoin Cash network only costs one penny. In contrast, according to a new study by the World Bank, banks will charge fees for similar services, an average of 10.89% of the amount remitted.
In Nigeria, citizens living abroad have turned to cryptocurrency to escape the country’s overvalued foreign currency exchange rate imposed by the Central Bank of Nigeria. It is believed that every time cash is cashed, the recipient loses 20% to 30% of the value of the remittance.
What do you think of Yellow Card’s cryptocurrency remittance business in Africa? Let us know in the comments section below.
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