The sector is seeking worldwide acceptance and accessibility despite the continuing crypto cold. A new collaboration between CoinCorner and Bitnob allows users from different continents to conduct cross-border transactions using several fiat currencies.
Transferring cash between Europe and Africa typically necessitates the use of a third-party facilitator, such as Western Union, which is based on centralized companies. These deals are notorious for their pricey cuts and frequently involve many parties prior to clearance.
Users may now transfer payments from the United Kingdom and Europe to selected African nations via the Bitcoin Lightning Network. Send Globally allows you to transfer British pounds (GBP) or Euros (EUR) to the currencies of Nigeria (NGN), Kenya (KES), and Ghana (GHS).
The monies are automatically transformed into BTC over the Lightning Network, then quickly translated to the recipient’s local currency and put directly into their bank account or mobile money wallet.
According to Danny Scott, CEO of CoinCorner, the remittance industry is a significant opportunity to demonstrate the utility of BTC.
“The borderless 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 low cost.”
According to Statista statistics, Nigeria will be among the top ten nations for remittance transfers in 2021. Furthermore, the World Bank indicated that Sub-Saharan Africa accounted for 14.1% of global remittances in the previous year.
However, over 80% of African nations restrict the types of organizations that can provide remittance-related services to local banks. Such exclusivity raises entrance hurdles, limiting access to credit for those who need it the most.
Because the region is replete with developing economies and practical use cases, the popularity of cryptocurrencies in Africa has been a hot issue in the field.
The crypto sector is expanding, particularly in North Africa. According to Chainalysis research, the Middle East and North Africa (MENA) area is the world’s fastest expanding.
In September, the Nigerian government met with Binance to discuss the possibility of establishing a special economic zone to encourage crypto and blockchain-related enterprises in the region.
A subsequent Chainalysis analysis emphasized Ghana’s ascent to prominence in the crypto industry. According to the report, the country might potentially catch up to Nigeria and Kenya in terms of cryptocurrency use.