Cryptocurrencies are revolutionary, and Ghanaians for the last few years have enjoyed the benefits of cryptocurrencies. It has provided a store of wealth, a hedge to inflation, a source of wealth, among several others. It comes as no surprise that many businesses and persons have inculcated cryptocurrencies into their everyday dealings.
However, certain people still feel that buying and selling cryptocurrencies can be a gamble because of their high volatility. While the volatility might be great for crypto traders as they can earn profits from buying and selling cryptocurrencies, it might be a little difficult for persons who wish to spend them on a daily basis. This may have encouraged more holding rather than spending.
Cryptocurrencies were built as a better alternative to fiat currencies. Still, Ghanaians may not be keen to use it in their daily transactions because of its volatility. As such, cryptocurrencies are not used to their full potential. This is why stablecoins such as USDT, USD coin were created as an alternative.
What are stable coins?
Stablecoins are digital currencies that attempt to lessen the volatility associated with cryptocurrencies. They are able to offer more price stability because they are tied to a reserve asset. They aim to provide stability associated with traditional fiat currencies while offering all the benefits of cryptocurrencies, such as security and lightning transactions.
The volatility of cryptocurrencies may have discouraged persons from adopting them as they aren't sure of purchasing power they will hold tomorrow. In fact, several Ghanaians turn to cryptocurrencies like bitcoin because they represent a hedge to inflation. However, because of the volatility of cryptocurrencies like bitcoin, they are discouraged from spending the tokens, but instead, they prefer to hold them.
Stablecoins can maintain their stability because they are tied to other assets that seem to maintain an otherwise stable price, such as fiat currencies, precious minerals e.g. gold, algorithmic functions, and even other cryptocurrencies. USDT is an example of such stablecoins, backed up by the traditional fiat currency, dollars.
However, stablecoins stability is dependent on what it is pegged or tied to. In essence, crypto-backed cryptocurrencies may experience less stability than fiat-backed stablecoins. This is because the fiat-backed stablecoin is linked to a traditional currency that has a central authority to regulate prices when there is volatility.
How Ghanaians can benefit from stablecoins
Stablecoins can assist Ghanaians greatly because they provide various vital opportunities for individuals, particularly the unbanked and underbanked and people attempting to fulfill their financial goals. Stablecoins like USDT, for example, can help:
1. Serve as a hedge to inflation
Ghana's inflation rate peaked at around 10% in 2020, though it has since fallen to 8.97%. However, even though its inflation is lower than in most African countries, it still discourages saving. This is because the purchasing power of Ghanaian cedi has decreased, requiring you to spend an additional 9% of your earnings to purchase an item that you valued just a month before. It may appear insignificant, but when added up over time, it can stifle your financial progress.
Stablecoins like USDT provide a better and more secure way to preserve money while ensuring that its value remains constant despite the depreciation of the Ghanaian Cedi. Although cryptocurrencies offer the same benefit, they provide a far more stable alternative because cryptocurrencies' price volatility is avoided. You can easily purchase cryptocurrencies such as bitcoin and convert to USDT before the market turns bearish, preserving the value of your finances while avoiding the risk of your cryptocurrencies depreciating in value.
2. Encourage the use of cryptocurrencies in our daily transactions
Stablecoins are backed by a fiat currency, such as USDT. This enables Ghanaians to conduct local and international transactions without fear of currency exchange rate fluctuations. This is because its blockchain technology allows international transactions to be processed at no additional cost and at a considerably faster rate.
3. Ease of Access
Stablecoins are decentralized, and while they may be tethered to a typical fiat currency like the pound, they offer more benefits than simply saving money in dollars. This is due to the lack of a central authority (government) in charge of its issue. This lets you buy USDT without worrying about cross-border limits from anywhere on the globe. Because Tether is backed by actual currency reserves, there are no supply constraints. Purchasing tether tokens is simple as long as there is money in the reserve.
4. Ease of Transactions
Stablecoins perform transactions with the same lightning speed as other cryptocurrencies. As a result, Ghanaians may readily complete international transactions that would ordinarily take hours, days, or even weeks in minutes, without worrying about the value difference because the currency is tied to fiat currencies. This can also be a very effective way for businesses to pay their employees around the world with minimum transaction fees and without having to worry about currency exchange rates.
5. Integrate cryptocurrencies with traditional financial ecosystem
There has been a considerable gap between the crypto market and the traditional financial structures for a long time, with a little intersection. Stablecoins backed by fiat provide a tool for bridging the gap between marketplaces. Cryptocurrencies would be able to perform functions beyond trading and investing. In a credit industry that has hitherto relied mainly on fiat currency, stablecoins might be used to pay for and receive loans.
How to Buy USDT in Ghana
The USDT, among other stablecoins, has a lot of potential for the Ghanaian people. Yellow Card recognizes this and, in keeping with its purpose of "financial inclusion for everyone," is committed to making it widely available to Ghanaians. You can easily buy USDT in Ghana with your local currency or convert bitcoin to USDT using Yellow Card.
1. Sign up for an account
Creating a Yellow Card account is completely free, and there are no hidden fees. All you have to do is join up and fill out your information on the official Yellow Card website at web.yellowcard.io on your device. You can also get the Yellow Card app from the App Store for iOS and Google Play for Android.
2. Fund your account with Ghanaian Cedi (GHS)
Log in and select "deposit" on your dashboard once you've created your Yellow Card account. Choose from the payment options on the screen: standard bank transfer or mobile money (MoMo) - The funds will appear in your GHS balance once your deposit has been validated. Any sum transferred to the wallet belongs to you and you alone; therefore, you can withdraw your funds whenever you choose.
3. Buy USDT
You can buy USDT once your account has been funded. Go to the "Buy USDT" option in your tether wallet and enter the amount of USDT you wish to buy on the buy screen. After you've confirmed your order, place a buy order. After the buy order has been confirmed, your USDT will appear in your wallet immediately. Yellow Card also allows you to convert bitcoin, ethereum, to USDT on your Yellow Card wallet.
With the growing popularity of cryptocurrencies, many are looking for a better way to deal with their significant volatility. Stablecoins provide a bridge that will ease adoption and strengthen the stability of digital currencies as cryptocurrency expands around the world. Yellow Card is at the forefront, making stablecoins and other cryptocurrencies easily accessible to Ghanaians at the best rates, with no extra costs in their local currency