Thunes and Yellow Card Partner to Drive Stablecoin Adoption and Financial Inclusion in Emerging Markets – TechAfrica News

Strategic Partnership to Advance Sustainable Development Goals through Financial Technology

Executive Summary

A strategic partnership has been formed between Thunes, a global cross-border payments leader, and Yellow Card, a licensed stablecoin on- and off-ramp provider. The collaboration is designed to enhance the efficiency of international business payments and accelerate stablecoin adoption in developing economies, thereby making a direct contribution to the United Nations Sustainable Development Goals (SDGs).

Core Objectives of the Collaboration

• To accelerate the adoption of stablecoins for international business transactions.
• To enhance the speed, transparency, and cost-effectiveness of cross-border payments.
• To expand financial inclusion for businesses and individuals in underserved regions through blockchain and digital asset technology.

Alignment with Sustainable Development Goals (SDGs)

The initiative is strategically aligned with the 2030 Agenda for Sustainable Development, with significant contributions to the following goals:

1. SDG 9: Industry, Innovation, and Infrastructure: The partnership leverages innovative financial technology, including blockchain and stablecoins, to build a resilient, accessible, and inclusive financial infrastructure for emerging markets.
2. SDG 10: Reduced Inequalities: By lowering transaction costs and providing access to financial services for populations with limited access to traditional banking, the collaboration directly addresses Target 10.c (reduce remittance costs) and the broader goal of reducing inequality within and among countries.
3. SDG 8: Decent Work and Economic Growth: The creation of a more efficient payment ecosystem supports enterprises in developing economies, facilitating international trade and fostering sustainable economic growth.
4. SDG 1: No Poverty: Enhanced financial inclusion and access to stable digital assets can empower individuals and businesses, providing tools for economic stability and poverty reduction.
5. SDG 17: Partnerships for the Goals: This collaboration between Thunes and Yellow Card exemplifies a private sector partnership mobilizing financial and technological resources to achieve sustainable development objectives.

Implementation and Anticipated Impacts

The partnership will integrate Yellow Card’s stablecoin infrastructure with Thunes’ extensive global payment network. This will enable seamless, compliant, and cost-effective cross-border settlements, addressing long-standing challenges in developing economies.

• Mitigation of High Transfer Costs: Providing a lower-cost alternative to traditional correspondent banking systems.
• Reduction of Currency Volatility Risks: Utilizing stablecoins to protect the value of transactions against local currency fluctuations.
• Expansion of Financial Access: Bridging financial gaps for individuals and businesses excluded from the formal banking sector.
• Promotion of Digital Transformation: Driving economic participation by integrating underserved markets into the global digital economy.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights issues and solutions that are directly connected to several Sustainable Development Goals (SDGs). The primary focus on financial inclusion, leveraging technology for economic development in emerging markets, and forming partnerships for these goals connects to the following SDGs:

• SDG 8: Decent Work and Economic Growth – The initiative aims to drive economic participation by improving financial infrastructure, which is a key component of sustainable economic growth.
• SDG 9: Industry, Innovation and Infrastructure – The partnership is centered on leveraging innovative fintech solutions, blockchain, and digital asset technology to build a more efficient and accessible payment infrastructure.
• SDG 10: Reduced Inequalities – By addressing the financial exclusion of individuals and businesses in underserved regions and reducing the high costs of cross-border transactions, the collaboration works towards reducing economic inequalities.
• SDG 17: Partnerships for the Goals – The article is fundamentally about a strategic partnership between two private sector entities (Thunes and Yellow Card) to achieve common goals related to sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the specific actions and goals described in the article, the following SDG targets can be identified:

1. SDG 8: Decent Work and Economic Growth

   • Target 8.10: “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.”
     
     Explanation: The article states the partnership aims to expand “financial inclusion” and address “limited access to traditional banking systems” in developing economies, which directly aligns with this target of expanding access to financial services.

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.3: “Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services… and their integration into value chains and markets.”
     
     Explanation: The collaboration focuses on enhancing “the efficiency of international business payments” and enabling “cost-effective cross-border settlements for enterprises,” which supports the integration of businesses in developing countries into the global economy.

3. SDG 10: Reduced Inequalities

   • Target 10.c: “By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent.”
     
     Explanation: Although the article focuses on business payments, the technology and goal are directly relevant to this target. It explicitly mentions addressing “high transfer costs” and making cross-border money movement “cost-effective,” a core objective of Target 10.c.

4. SDG 17: Partnerships for the Goals

   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…”
     
     Explanation: The entire article describes a “strategic partnership” between two private companies, Thunes and Yellow Card, to leverage their respective strengths (payment network and stablecoin infrastructure) to achieve shared development goals, embodying the spirit of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article implies several indicators that can be used to measure progress towards the identified targets, even if not explicitly citing the official SDG indicator codes.

1. For Target 8.10 (Access to financial services):

   • Implied Indicator: The rate of stablecoin adoption and the number of businesses and individuals in underserved regions utilizing the new payment platform.
     
     Explanation: The article’s goal to “accelerate stablecoin adoption” and “expand financial inclusion” suggests that tracking the uptake of these digital financial services would be a key measure of success, aligning with the official indicator 8.10.2 (Proportion of adults with an account at a financial institution or mobile-money-service provider).

2. For Target 9.3 (Access to financial services for enterprises):

   • Implied Indicator: The volume and value of cross-border settlements processed for enterprises in developing economies through the partnership.
     
     Explanation: The focus on enabling “seamless, compliant, and cost-effective cross-border settlements for enterprises” implies that the volume of these transactions would be a direct measure of increased access to financial services for businesses.

3. For Target 10.c (Reduce transaction costs):

   • Implied Indicator: The average cost of a cross-border transaction as a percentage of the total value sent via the Thunes-Yellow Card network.
     
     Explanation: The stated aim of addressing “high transfer costs” and making payments “cost-effective” directly points to the reduction of transaction costs as a primary performance indicator, which mirrors the official indicator 10.c.1 (Remittance costs as a proportion of the amount remitted).

4. For Target 17.17 (Partnerships):

   • Explicit Indicator: The existence and operationalization of the strategic partnership between Thunes and Yellow Card.
     
     Explanation: The article itself is evidence of this indicator. The partnership’s success could be further measured by the scale of its combined network and the financial resources mobilized to “bridge financial gaps in emerging markets.”

4. Summary Table of Findings

Source: techafricanews.com