The ongoing crypto winter isn’t stopping the industry from pushing for global adoption and accessibility. A new partnership between CoinCorner and Bitnob opens up the ability for users on every continent to conduct cross-border transactions using multiple fiat currencies.
Typically, transferring money between Europe and Africa requires a third-party service provider such as Western Union, which relies on centralized facilities. These transactions often have multi-party processing times before approval and are notorious for their costly cutbacks. According to World Bank estimates, remittances to sub-Saharan Africa totaled more than US$40 billion annually as of 2020 – with Nigeria alone receiving almost half of the sum.
Now users can transfer funds from the UK and Europe to select countries in Africa via the Bitcoin (BTC) Lightning Network. The Send Globally application allows you to send British Pounds (GBP) or Euros (EUR) to the local currencies of Nigeria (NGN), Kenya (KES) and Ghana (GHS).
Funds are automatically converted to BTC via the Lightning Network, then instantly converted to local currency and deposited directly into the recipient’s bank account or mobile wallet.
Sending remittances to Africa, especially from the UK and Europe, is notorious for its high cost. Source: IFAD
CoinCorner CEO Danny Scott said the remittance market is a great opportunity to highlight the utility of BTC.
“The limitless nature of bitcoin has always made it a great tool for sending money around the world, but now with the Lightning Network, sending bitcoin is instant and very inexpensive.”
In 2021, Statista data placed Nigeria among the top 10 countries for remittance payments. In addition, the World Bank reported that sub-Saharan Africa accounted for 14.1% of global remittances last year.
However, nearly 80% of African countries are restricting the types of institutions that are able to offer remittance services from local banks. Such exclusivity creates barriers to entry and therefore access to finance for the people who need it most.
Related: Remittances lead to “uneven but rapid” crypto adoption in Latin America
Cryptocurrency proliferation in Africa has been a hot topic in space as the continent is teeming with emerging markets and practical use cases.
In North Africa in particular, the growth of the crypto industry continues to increase. A report by Chainalysis found that the Middle East and North Africa (MENA) region is the fastest growing region in the world.
In September, the Nigerian government held meetings with Binance to potentially negotiate a special economic zone designed to support crypto and blockchain-related businesses in the region.
A later report by Chainalysis also highlighted Ghana’s rise to prominence in the crypto space. It said the country could potentially catch up with Nigeria and Kenya in terms of crypto adoption.
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