The National Bank of Egypt uses blockchain to boost the remittance business
Another important financial institution has partnered with the blockchain-based payment firm Ripple.
The National Bank of Egypt has signed a cooperation agreement with Ripple to establish new channels for incoming remittances, according to a February 11 report from local daily news site Youm7.
According to reports, the agreement makes the National Bank the first country to venture into the blockchain sector.
Remittances: a global market of almost $ 600 billion
According to World Bank data, the global remittance market, which refers to the money or goods that migrants send to their families and friends in their countries of origin, is expected to reach 597 billion dollars in 2020.
Egypt was projected to be the fifth largest recipient of remittances in the world in 2019 ($ 26.4 billion), after India, China, Mexico and the Philippines.
By joining the RippleNet network, which includes more than 300 international banks and institutions, the National Bank apparently expects to access new markets and support and expand its remittance business in the Gulf region in particular.
The president of the National Bank, Dalia El-Baz, said she expects RippleNet to grow exponentially and thus provide a boost to the institution’s liquidity management and outstanding foreign currency.
By accessing faster and more efficient cross-border payment mechanisms, the National Bank expects to expand its client base, while guaranteeing users full compliance with international insurance standards and high levels of security of the operating network in the blockchain .
By subscribing to RippleNet, the Egyptian bank joins other correspondent banks and market participants in the Arab Gulf states, as well as institutions in financial centers such as the United Kingdom and the United States.
At the time of publication, Ripple’s native XRP token is trading at approximately $ 0.29, an increase of 6.15% on the day and almost 11% on the week, according to the Cointelegraph XRP Price Index.
Blockchain remittances in early 2020
In the broader blockchain remittance sector, news has recently revealed that Bitspark, the Hong Kong-based blockchain remittance startup, is stopping services, citing internal restructuring problems.
One of the co-founders of the firm cited issues that had apparently been exacerbated by the outbreak of coronavirus in China, as well as by anti-government protests in Hong Kong.
Earlier this year, Thailand’s oldest bank, Siam Commercial Bank, partnered with Ripple to create a blockchain-driven mobile application that will offer low-cost, instant cross-border payments.
Blockchain-bitcoin technology is giving solutions to people living in other countries from their origin, remittances represent a great help to families who have left due to unwanted circumstances, economic resources help overcome economic crises Direct families, therefore traditional financial institutions are catching up with the idea of lowering bank transfer costs. It is expected by new announcements.
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