CoinCorner and Bitnob partnership highlights potential of crypto in African remittance market

CoinCorner and Bitnob have partnered to create a new application that enables cross-border transactions between the UK, Europe, and Africa. The application, called Send Globally, allows users to transfer British pounds and euros to the local currencies of Nigeria, Kenya, and Ghana via the Bitcoin Lightning Network.

According to CoinCorner CEO Danny Scott, the remittance market presents a significant opportunity for the utility of BTC to be highlighted. In 2021, Nigeria was placed in the top 10 countries for remittance payments by data from Statista. The World Bank reported that in the last year, Sub-Saharan Africa made up 14.1% of global remittances.

The Lightning Network automatically converts the funds into BTC, which are then instantly converted to the local currency and deposited into the receiver's bank account or mobile money wallet. This is a significant development, as nearly 80% of African countries restrict the type of institutions able to offer local banks remittance-related services.

The prevalence of cryptocurrencies in Africa has been a hot topic in the space, with the continent home to emerging economies and practical use cases. In September, the Nigerian government held meetings with Binance to negotiate a special economic zone for crypto and blockchain-related businesses in the region. A report from Chainalysis also highlighted Ghana's rise to prominence in the crypto space, saying the country could potentially catch up to Nigeria and Kenya in terms of crypto adoption.

The partnership between CoinCorner and Bitnob opens up a way for users to perform cross-border transactions involving multiple fiat currencies. The transfer of funds between Europe and Africa typically requires a third-party facilitator like Western Union, which rely on centralized entities. These transactions often have long processing times and are known for their expensive cuts.

World Bank estimates show that remittances to Sub-Saharan Africa went upwards of $40 billion yearly as of 2020, with Nigeria receiving almost half of the total. The Send Globally application offers a more efficient and cost-effective solution for these transactions. The use of the Bitcoin Lightning Network also ensures a higher level of security and privacy for users.

Overall, the partnership between CoinCorner and Bitnob is a significant step forward in the adoption of cryptocurrencies in Africa and presents a practical use case for the technology. It also highlights the potential of the Bitcoin Lightning Network in facilitating cross-border transactions involving multiple fiat currencies.