More African banks are turning to blockchain technology to boost their remittance business. Next on the line to fall to blockchain technology is Egypt’s first and largest bank, National Bank of Egypt which has signed a cooperation agreement with Ripple to establish new channels for inward remittances. The agreement reportedly makes the National Bank of Egypt the country’s first to venture into the blockchain sector.
Here Is All You Need To Know
- The global remittance market — referring to the money or goods that migrants send back to family and friends in their home countries — is expected to reach $597 billion in 2020, according to data from the World Bank.
- Egypt was projected to be the fifth highest remittance recipient country worldwide in 2019 ($26.4 billion), following India, China, Mexico and the Philippines.
- By joining the RippleNet network — which includes over 300 international banks and institutions — the National Bank ostensibly hopes to access new markets, and to support and extend its remittance business in the Gulf region in particular.
Read also: Tunisia Becomes The First Country To Launch A Central Bank Digital Currency
- National Bank of Egypt Chair Dalia El-Baz said he expects RippleNet to grow exponentially and to thus provide a boost to the institution’s liquidity management and foreign currency earrings.
- In accessing faster and more efficient cross-border payments mechanisms, the National Bank hopes to broaden its customer base, while assuring users of full compliance with international insurance standards and high levels of operational network security on the blockchain.
- In signing up to RippleNet, the Egyptian bank joins other correspondent banks and market participants in the Arab Gulf states, as well as institutions in financial hubs such as the United Kingdom and the United States.
In the November of 2019, Tunisia ‘s central bank was widely reported (although the bank later denied the report) to have launched the digitization of the Tunisian dinar, marking a remarkable move to issue the Tunisian central bank digital currency (CBDC) on the blockchain Universa. If this move succeeds, Tunisia will become the first country to start moving its national currency on a blockchain platform. The Russian startup ICO Universa, according to the reports was helping the country to issue and manage the digital currency, e-Dinar.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com