- Africa-wide crypto trading platform Yellow Card has launched trading options with the new PayPal stablecoin (PYUSD).
- Africans can now use the company’s app to transfer funds to people in the US much quicker using the PayPal stablecoin.
- Stablecoins are less volatile than other traditional tokens and the PayPal coin is linked to the price of the US Dollar.
With a focus on inclusive digital payment options, Africa has embraced cryptocurrency with a unique fervour, for better or for worse. The continent is home to several traders in digital tokens, and one of the largest is Yellow Card, even though the company was founded in the States and is headed by an American.
Today, Yellow Card has announced that it is the first crypto trader on the continent to launch PayPal USD (PYUSD). This stablecoin, a type of cryptocurrency that rarely fluctuates due to being attached to a commodity, in this case the US Dollar, is the official token of PayPal and is issued by the Paxos blockchain.
Yellow Card hopes the new token becoming available across its many African markets, including South Africa, will provide even more ways Africans will be able to trade with the Dollar.
PYUSD launched in August to the US market and is a fully backed USD stablecoin, the trader explains. It has servers held 100 percent in US Dollar deposits, US treasuries and cash equivalents. This means that its price will rarely fluctuate. While this means that it is a safer trading option due to less volatility, it will also be less prone to huge jumps in price like Bitcoin.
“PYUSD – and its reserves – are subject to strict regulatory oversight by the New York State Department of Financial Services meeting the highest standards of consumer protection,” Yellow Card explains.
“This moment is a testament to the relentless pursuit of innovation and financial inclusion that Yellow Card stands for. Launching PYUSD on our platform is not just a business achievement, it’s a commitment to our mission of making digital currencies accessible to everyone in Africa,” said Yellow Card CEO Chris Maurice in a press release sent to Hypertext.
Yellow Card users can now transfer funds to and from the US using PYUSD on the Yellow Card app. This is because PayPal and Venmo users in the US can accept PYUSD and exchange for the dollar.
“Essentially, it removes longer processes while providing security, stability, speed – while still being cost effective and less expensive,” the company continues. Additionally, customers will be able to buy, sell and transfer PYUSD on the Yellow Card platform without needing a PayPal account.
Despite recent rallies in Bitcoin and Ethereum, the cryptocurrency market is still a shadow of its former glory. Bitcoin in particular is still at a higher value than it has been in the last 19 months, touching $35 000, but concerns still abound that it may falter yet again.
Due to it being a stablecoin, PYUSD sees a similar price comparison between the USD and the South African Rand. Currently, it is R18.18 to the dollar, which will be reflected in the price of PYUSD.
For more information on how to get started, visit the Yellow Card website (https://YellowCard.io/). Remember, there are no promises when trading in crypto as tokens continue to be extremely volatile. Use platforms like Yellow Card at your own risk.
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