Cryptocurrency Industry in Malawi
Introduction
Cryptocurrencies are taking the world by storm, with some countries accepting digital currency payments.
The technology is relatively new and less known in Malawi, however, Yellow Card Services focuses on cryptocurrencies in Malawi as well as other countries.
We had a chat with the Country Manager of Yellow Card to understand the cryptocurrency industry.
Tikhala Mbedza
| Name | Tikhala Mbedza |
|---|---|
| Position | Country Manager |
| Company | Yellow Card Services |
Interview Date: July 2023
Interview
“We believe that the future of cryptocurrency in Malawi is bright.”
Yellow Card (YC) is a cryptocurrency exchange that was founded in 2016 with the mission of making cryptocurrencies more accessible to people in Africa.
Our platform provides a fast, easy, and secure way for individuals to buy and sell cryptocurrencies using their local currency.
The platform is centralised, which means users can only buy and sell cryptocurrencies to Yellow Card.
Cryptocurrency is digital money you can use to buy things online.
It’s different from regular money because it’s not controlled by a bank or government.
Instead, it’s stored on a computer in a way that makes it safe and secure.
Blockchain is the technology that makes cryptocurrency possible.
Think of it like a big, public notebook where everyone can write down their transactions.
Once something is written in the notebook, no one can change or erase it.
This makes sure that everyone’s transaction is safe and secure.
To buy and sell cryptocurrency on our platform, users need to create an account and verify their identity.
Once their account is set up, they can use their local currency (Malawi Kwacha) to buy cryptocurrencies such as Bitcoin or Ethereum and sell them for their local currency when they want to cash out.
At the moment, in Malawi, we support one payment method – bank transfers.
We are however working on incorporating mobile money.
Cryptocurrency can be spent in the physical world, but it depends on where you are.
Some merchants accept cryptocurrencies as payment, and there are also crypto debit cards that allow users to spend their cryptocurrency like traditional currency.
However, the adoption of cryptocurrencies as a form of payment is still limited in many parts of the world.
Some common use cases across the continent include: paying for school fees, arbitrage trading for profit, paying and receiving salaries and remittances.
Currently, the use of cryptocurrency in Malawi is still limited.
However, Yellow Card is working to expand its services in the country and increase awareness about the benefits of using cryptocurrencies.
Whether cryptocurrency is better than traditional currency depends on the individual’s needs and circumstances.
Cryptocurrency offers greater security, but it can also be volatile and difficult to use in some cases.
Cryptocurrencies are also not widely accepted as a form of payment, which can limit their usefulness in the physical world.
However, cryptocurrencies can provide greater financial inclusion and access to financial services for people who may not have access to traditional banking services.
Additionally, stablecoins, a type of cryptocurrency that is pegged to the value of a traditional currency, can offer a more stable alternative to traditional currency in countries with volatile economies.
Stablecoins can provide a reliable store of value and a means of exchange that is not subject to the same inflationary pressures as the local currency.
This can be particularly important in countries where the national currency has been known to experience high levels of inflation and exchange rate volatility.
Therefore, stablecoins can potentially offer a more stable and secure alternative to traditional currency in certain circumstances.
Yes, like any digital financial service, there are risks involved in buying cryptocurrency.
The value of cryptocurrencies can be volatile, and there is always the risk of fraud and hacking.
It is important for individuals to do their research and take necessary precautions when buying and selling cryptocurrency.
This includes using a reputable exchange like Yellow Card, securing their private keys, and using two-factor authentication.
We strive to keep our fees competitive and transparent.
Users can see the fees associated with each transaction before they confirm it.
Zero Deposit fee, 500 mwk withdrawal fee, and Variable exchange rate.
The Yellow Card platform is very safe.
We take security very seriously and have implemented measures to protect our users’ accounts and data.
We use industry-standard security protocols and have a team dedicated to monitoring and preventing fraud and hacking attempts.
In September 2022, Yellow Card became the first cryptocurrency company on the continent to be granted a Virtual Asset Service Provider license to operate in Botswana, receiving a license issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA).
Yellow Card complies with global and applicable domestic anti-money laundering, counter-terrorism financing, sanctions, and other ‘know your customer’ requirements, including the Financial Action Task Force (FATF) Travel Rule.
Some of the challenges we are facing in Malawi include limited awareness and understanding of cryptocurrencies among the general public, as well as regulatory challenges.
We are working to increase awareness about the benefits of using cryptocurrencies and address regulatory concerns through dialogue with policymakers and regulators.
We have seen strong growth in user adoption in Malawi since we launched our services in the country.
We have about 30,000 users registered in Malawi.
We believe that the future of cryptocurrency in Malawi is bright.
As more people become aware of the benefits of using cryptocurrencies, we expect to see increased adoption and usage in the country.
Our future plans as a company include increasing the range of cryptocurrencies that we support – earlier this year we added five additional coins to the platform and will continue to do so.
We are also exploring ways to integrate with other financial services and provide greater access to financial services for underserved communities in Malawi and Africa as a whole.
We believe that cryptocurrencies have the potential to transform the financial landscape in Africa and provide greater financial inclusion for all.
We encourage individuals to do their research and to take necessary precautions when buying and selling cryptocurrencies, and we are here to support them every step of the way.
