Bitcoin Lightning Network to be used in fiat transfers between EU and Africa
The ongoing crypto winter is not stopping the industry from pushing for global adoption and accessibility. A new partnership between CoinCorner and Bitnob opens a way for users across continents to perform cross-border transactions involving multiple fiat currencies.
Typically transfer of funds between Europe and Africa requires a third-party facilitator like Western Union, which rely on centralized entities. These transactions often have processing times of multiple parties prior to approval and are known for their expensive cuts. World Bank estimates that remittances to Sub-Saharan Africa went upwards of $40 billion yearly as of 2020 —with Nigeria receiving almost half of the sum alone.
Now, users can transfer funds via the Bitcoin (BTC) Lightning Network from the United Kingdom and Europe to select countries in Africa. The application, Send Globally, allows British pounds (GBP) or Euros (EUR) to be transferred to the local currencies of Nigeria (NGN), Kenya (KES) and Ghana (GHS).
Through the Lightning Network, the funds are automatically converted into BTC, then instantly converted to the local currency and deposited straight into the bank account or mobile money wallet of the receiver.
Danny Scott, the CEO of CoinCorner, said the remittance market is a big opportunity to highlight the utility of BTC.
In 2021, data from Statista placed Nigeria in the top 10 countries for remittance payments. Additionally, the World Bank reported tha in the last year Sub-Saharan Africa made up 14.1% of global remittances.
However, nearly 80% of African countries restrict the type of institutions that are able to offer local banks remittance-related services. Such exclusivity creates barriers to entry, therefore, access to finance for the
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