The National Bank of Egypt (oldest and largest bank in the country) has signed a co-operative agreement with Ripple (parent company of XRP cryptocurrency) to establish new channels for its remittance payments.
Remittance – refers to money or goods that individuals send to family and loved ones back in their home countries.
According to data by the World Bank, the current global remittance market is projected to reach $597 billion in 2020, with Egypt ranked among the top 5 remittance recipient countries globally; after India, China, Mexico and Philippines.
Through this partnership, the Bank of Egypt will utilize the RippleNet blockchain-based payment network to facilitate faster and cheaper cross-border payments. NBE also hopes to boost its remittance business in the region and access new markets through the Ripple platform.
Chair of the NBE Dalia El-Baz noted that the RippleNet network will increase the bank’s liquidity management and foreign currency earnings, while lowering costs and ensuring security for large transactions.
He added that the platform will also maintain international remittance standards, as they look to expand the NBE customer base.
The National Bank of Egypt now becomes the first bank in the country to get involved in the blockchain industry.