The crypto space has been on a resilient pilgrimage to foster the global adoption and accessibility of the industry despite the different setbacks the market has recently experienced. One of the latest strides in achieving this is the partnership between CoinCorner and Bitnob which will enable users across the globe to conduct cross-border transactions directly.
Before this partnership, the transfer of funds between Africa and Europe involved the use of a third party such as Western Union, Ria, and World Remit. The use of these third parties has been criticized for their expensive charges and their long processing time. Despite these criticisms, these third parties are still being utilized as the transacting parties have no other alternative. Statistics shown by the World Bank have disclosed that as of the year 2020, over $40 Billion gets remitted into the coffers of Sub-Saharan Africans, with Nigeria getting close to half of the aggregate alone.
With this large amount that gets transacted between Africa and the western world, no solid plan has been made to check the lapses of these existing third parties.
Through this partnership, people can send funds via the Bitcoin Lightning Network from the United Kingdom and all of Europe to some selected countries in Africa. Currently, funds can be sent to Nigeria, Kenya and Ghana. This means that transactions via Bitcoin Lightning Network will allow funds in British pounds (GBP) or Euros (EUR) to be transferred to the local currencies of Nigeria (NGN), Kenya (KES), and Ghana (GHS).
In sending Fiat through the Bitcoin Lightning Network, the fiat will be automatically converted into BTC and will be sent to the designated account BTC. Upon the receipt of the funds, the BTC will be converted immediately to the Country’s local currency and deposited directly into the receiver’s bank account or mobile money wallet.
Commenting on this new development, the CEO of CoinCorner, Danny Scott said that it is time for the remittance market to “borderless nature” of bitcoin which facilitates the easy sending of funds.
Africa has over time contributed significantly to global remittances. Statista revealed that in 2021, Nigeria is among the top 10 countries for remittance payments. Backing this up, the World Bank revealed that “Remittances to Sub-Saharan Africa are estimated to have increased by 5.2%” despite the “global headwinds.”
For a region to pull so many strings in the Global remittance space despite the challenges it has been facing with third parties, the use of BTC to conduct transactions will further upscale transactions and make them more seamless.
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