Bitcoin Lightning Network Will Be Used For Money Transfers Between EU and Africa
- CoinCorner and Bitnob have partnered to allow settlement of cross-border transactions with the help of Bitcoin (BTC) Lightning Network.
- In order to initiated a transaction between the two continents, a centralized third party needs to be present which causes dealys.
- The two crypto firms have debuted Send Globally which will convert money sent in GBP, EUR to NGN, KES, and GHS.
- As per World Bank, in 2020, Africa received upwards of $40 billion in remittance from EU.
The crypto winter has definitely dealt a strong blow to the development and acceptance of blockchain technology and related firms, but it has definitely not killed the spirit of the players in the industry. As per a recent announcement, two crypto firms have come together to use the Bitcoin (BTC) Lightning Network to settle transactions made in fiat currencies between the European Union and Africa.
As per recent developments, CoinCorner, a firm that allows crypto investors in the UK and Europe to buy Bitcoin (BTC) with a credit card or debit card, has partnered with Bitnob, a platform that helps investors save money in bitcoin and USD. Together, the two crypto platforms will allow users from the two continents to settle cross-border transactions in a simple and easy manner using the Lightning Network, which is multiple times faster than the BTC network.
In order to initiate a transfer between Africa and the EU, a centralized entity needs to be present that acts as a third-party facilitator (for example, Western Union). Now, these third party facilitators require a lot of time to process the transactions, and as a result, the funds are credited after a long time in the accounts of the receiver. This is the issue that CoinCorer and Bitnob are targeting.
In a report, the World Bank estimated that more than $40 billion worth of remittances were processed in the year 2020 that were destined for Africa. Moreover, half of the entire sum went to Nigeria alone. With the help of the two firms, Bitcoin (BTC) enthusiasts will be able to receive money quite quickly because of the Lightning Network. The funds sent in British pounds (GBP) or euros (EUR) will be converted to the local currencies of Nigeria (NGN), Kenya (KES), and Ghana (GHS) with the help of Send Globally.
“The borderless nature of Bitcoin has always made it a great tool for sending money around the world, but now with the Lightning Network, sending Bitcoin is instant and very low cost,”
said Danny Scott, the CEO of CoinCorner.
Meanwhile, it is also crucial to note that multiple firms have targeted cross-border settlements using cryptocurrencies as their goal. However, regulatory uncertainties surrounding blockchain and cryptocurrencies remain a hindrance. Notably, the Bank of Russia is in talks to possibly legalize crypto for cross-border payments amid the heavy sanctions imposed by other nations, including the US.
Interestingly, Bitcoin adoption has recently once again picked up pace due to the Lightning Network. Michael Saylor, who turned a stagnant software firm into a crypto powerhouse, recently revealed that his company, MicroStrategy, is working on developing solutions that would allow a large number of people onto the Lightning Network. Additionally, the presence of the Lightning Network on crypto exchanges is also increased with Paxful, Coinbase, Kraken, and Binance.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
