Fintech company Fonbnk is tackling the issue of financial accessibility in Africa by converting prepaid SIM cards into digital debit cards. This solution is particularly relevant in Africa, where 350 million people are unbanked and only 20% of families have formal bank accounts. By integrating the Stellar blockchain, Fonbnk enables users to convert airtime into USDC (a stablecoin) and gain access to a range of financial services.
Fonbnk leverages the widespread use of prepaid SIM cards in Africa to create a financial interface. With over 8 billion active prepaid SIM cards globally, Fonbnk connects these phone accounts to the digital economy, allowing users to participate in financial activities. Chris Duffus, CEO of Fonbnk, highlighted the potential of their solution, stating that it can help billions of people join the digital financial world, especially in markets where traditional financial services are lacking.
The process of converting airtime to USDC is simple and efficient. Customers load their Fonbnk wallets with money or prepaid airtime, which is then expressed in USDC on the Stellar blockchain. Each airtime credit is equivalent to $0.01 of USDC, facilitating easy conversion. USDC holders can use their funds to purchase goods and services, access various services, or buy discounted airtime credits. To convert USDC back into cash, users can swap it through Stellar anchors.
The integration with the Stellar network expands Fonbnk’s capabilities, offering user-friendly tools for non-technical individuals. These tools include low and no-code options to enhance ease of use.
In a separate development, the price of Stellar Lumens (XLM) has experienced a decline recently, losing almost half of its value since its peak in November. However, technical signals and market conditions suggest a potential revival of the cryptocurrency in the near future. The XLM/USD is currently forming a falling wedge structure, which is considered a reversal pattern. Analysts believe that if a breakout occurs, the initial target for XLM will be $0.500, around 50% higher than the current price. This prediction is supported by Fibonacci Retracement levels, with the 61.8% level at $0.2970 expected to act as a potential bottom for XLM. The Relative Strength Index (RSI) is also nearing oversold territory, further indicating the possibility of a rebound in January. At the time of writing, XLM is trading at $0.33, reflecting a 1.45% decline in the last 24 hours.
Recommended for you: