Bitcoin Lightning Network to be used in fiat transfers between EU and Africa

The ongoing crypto winter is not stopping the manufacture from pushing for planetary adoption and accessibility. A caller concern betwixt CoinCorner and Bitnob opens a mode for users crossed continents to execute cross-border transactions involving aggregate fiat currencies.

Typically transportation of funds betwixt Europe and Africa requires a third-party facilitator similar Western Union, which trust connected centralized entities. These transactions often person processing times of aggregate parties anterior to support and are known for their costly cuts. World Bank estimates that remittances to Sub-Saharan Africa went upwards of $40 cardinal yearly arsenic of 2020 —with Nigeria receiving astir fractional of the sum alone.

Now, users tin transportation funds via the Bitcoin (BTC) Lightning Network from the United Kingdom and Europe to prime countries successful Africa. The application, Send Globally, allows British pounds (GBP) oregon Euros (EUR) to beryllium transferred to the section currencies of Nigeria (NGN), Kenya (KES) and Ghana (GHS).

Through the Lightning Network, the funds are automatically converted into BTC, past instantly converted to the section currency and deposited consecutive into the slope relationship oregon mobile wealth wallet of the receiver.

Sending remittances to Africa, particularly from the U.K. and Europe, is known for its precocious cost. Source: IFAD

Danny Scott, the CEO of CoinCorner, said the remittance market is simply a large accidental to item the inferior of BTC.

“The borderless quality of Bitcoin has ever made it a large instrumentality for sending wealth astir the world, but present with the Lightning Network, sending Bitcoin is instant and precise debased cost.”

In 2021, information from Statista placed Nigeria successful the apical 10 countries for remittance payments. Additionally, the World Bank reported tha successful the past twelvemonth Sub-Saharan Africa made up 14.1% of planetary remittances.

However, astir 80% of African countries restrict the benignant of institutions that are capable to connection section banks remittance-related services. Such exclusivity creates barriers to entry, therefore, entree to concern for the radical who request it most. 

Related: Remittances thrust ‘uneven, but swift’ crypto adoption successful Latin America

The prevalence of cryptocurrencies successful Africa has been a blistery taxable successful the space, arsenic the continent is rife with emerging economies and applicable usage cases.

Particularly successful North Africa, maturation successful the crypto manufacture continues to grow. A study from Chainalysis revealed the Middle East and North Africa (MENA) region to beryllium the fastest increasing successful the world.

In September, the Nigerian authorities held meetings with Binance to perchance negociate a peculiar economical portion posed to enactment crypto and blockchain-related businesses successful the region.

A aboriginal study from Chainalysis besides highlighted Ghana’s emergence to prominence successful the crypto space. It said the state could potentially drawback up to Nigeria and Kenya successful presumption of crypto adoption.