Stablecoin issuer Tether now makes entry into Kenya

Stablecoin issuer Tether is joining the list of cryptocurrencies gaining popularity in Kenya.

Tether, or USDT as it is  called by its symbol, is mainly hosted on the Ethereum blockchain and  pegged to the US dollar.

The cryptocurrency has joined Yellow Card platform, allowing interested traders such as from Kenya to get a pie.

Yellow Card, an Africa-focused finance platform for trading cryptocurrencies  allows buying or selling of Tether using local currencies such as  the shilling.

The platform had gained popularity in countries such as Nigeria, Botswana, Cameroon and South Africa, and it’s partnership with Tether promises to lift uptake of this cryptocurrency in Kenya.

The Yellow Card will give   a secure cryptocurrency wallet to Kenyans wishing to trade in Tether since it allows one to send, receive, and store cryptocurrencies. 

Tether was initially designed to be worth $1 always and therefore maintaining this value in reserves for each tether issued.

This is part of what has qualified Tether as stable coin since it affords its users the benefits that come with a stable government currency while ensuring flexibility and ease of movement of the cryptocurrency.

“It presents an easy way for investors to trade one-to-one for the USD, without the volatility that comes with other cryptocurrencies, says the firm.

This means if the price of other cryptocurrencies is falling fast, one is able to trade quickly to this dollar-backed currency instead of trying to cash out.

Pegging Tether to the dollar also means one can exchange local currencies into this cryptocurrency when the value is higher than that of local currencies.

Stablecoins have been gaining popularity in countries such as Brazil with buyers relying on them to hedge against inflation and weakening local currencies.

Tether closed last year as one of the most widely used stablecoin and as the world’s fourth-largest cryptocurrency trailed only by Bitcoin, Ethereum and Ripple.

The coin has however been dwarfing Bitcoin in terms of daily volumes traded.

Stablecoins like Tether are an emerging class of crypto assets that are finding use in various areas , including in cross-border payments.

Trading in crypto has been gaining popularity in Kenya despite regulators such as Central Bank of Kenya and Capital Markets Authority calling for caution.

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