Bitcoin Lightning Network will be utilized for currency transfers between the European Union and Africa
CoinCorner and Bitnob collaborated to implement Bitcoin Lightning Network-based international payments from the United Kingdom and Europe to Africa.
Despite the crypto cold, the sector is still striving for widespread use and acceptance. CoinCorner and Bitnob have formed a collaboration to facilitate cross-continental transactions in several fiat currencies.
Transferring money from Europe to Africa often needs the use of a centralized entity like the Western Union.
These deals are notably costly because of the lengthy time required to review the paperwork of many parties before approval. By 2020, the World Bank predicted that remittances to Sub-Saharan Africa will top $40 billion annually, with Nigeria receiving over half of that amount by itself.
With the advent of the Bitcoin Lightning Network, Brits and Europeans may send money to certain nations in Africa. Send Globally facilitates the exchange of pound sterling (GBP) and euro (EUR) for the Naira (NGN), Kenyan Shilling (KES), and Ghanaian Cedi (GHC).
When a payment is made using the Lightning Network, it is first converted into Bitcoin (BTC), then immediately converted into the local currency and put into the recipient’s bank account or mobile money wallet.
With the advent of the Lightning Network, transferring Bitcoin is quick and extremely cheap cost. “Bitcoin’s decentralized nature has always made it an excellent tool for moving money throughout the globe.” According to Statista’s research, Nigeria will be among the top 10 nations to receive remittances in 2021.
On the other hand, over 80% of African nations limit the types of organizations that may provide local banks with remittance-related services.
Those who may benefit the most from access to financial resources are often shut out due to restrictions on newcomers imposed by such exclusivity.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.