Bitcoin Lightning Network to be used in fiat transfers between European and Africa
Crypto winter is not stopping the industry from pushing for global adoption. With the new partnership between CoinCorner and Bitnob, users across continents can conduct cross-border transactions involving multiple fiat currencies.
Third-party facilitators, such as Western Union, are typically used to facilitate transfers between Europe and Africa. Multiple parties are often involved in these transactions prior to approval, and they are notorious for being expensive. The World Bank estimates that remittances to Sub-Saharan Africa will exceed $40 billion per year by 2020, with Nigeria receiving nearly half of the total. Lightning Network from the United Kingdom(UK) and Europe(EU) to a few African countries. Send Globally allows you to transfer British pounds (GBP) or Euros (EUR) to the currencies of Nigeria (NGN), Kenya (KES), and Ghana (GHS).
The funds are automatically converted to Bitcoin (BTC) via the Lightning Network before being instantly converted to the recipient’s local currency and deposited directly into their bank account or mobile money wallet.
According to Statista data, Nigeria will be among the top ten countries for remittance payments in 2021. Furthermore, the World Bank reported that Sub-Saharan Africa accounted for 14.1% of global remittances in the previous year. However, nearly 80% of African countries restrict the types of institutions that can provide remittance-related services to local banks. Such exclusivity raises entry barriers, limiting access to finance for those who need it the most.
Because the continent is rife with emerging economies and practical use cases, the prevalence of cryptocurrencies in Africa has been a hot topic in the space. The crypto industry is expanding, particularly in North Africa.
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