By Hassan Mehmood (Saudi Arabia)
The National Bank of Egypt has recently announced a new partnership endeavor with Ripple Labs’ project RippleNet. RippleNet is a fintech service provider that operates transaction channels for institutional service providers like banks and forex exchanges. The main stakeholders for this commercial affiliation would be NBE and Lulu exchange. Egypt ranks high among the countries that are using remittance services.
Lulu exchange is one of the most sought-after monetary exchange platforms for Dubai and UAE consumers. The main objective of this venture is to pave pay for better and more efficient remittance facilities for consumers who want to transfer their money from UAE to Egypt. This new venture has a massive growth potential considering that Egyptian users send about $24 billion to their native land last year when the markets have slowed down due to the pandemic. Egypt lags behind only China, Mexico, and the Philippines in terms of huge remittance volumes.
Egyptian Users are Looking Forward to the Blockchain-based Technology
The current technology that is used for remittance transactions has a lot of shortcomings. It normally takes more than 24 hours and also charges a big transaction fee. However, with the introduction of blockchain-based technology, the natives of Egypt would be able to send money more frequently without having to worry about the massive transaction fees and lag of transfers.
Also read:Hesham Elsafty has told media that the new technology would allow NBE to explore new markets and take advantage and pave the way for the expansion of the market by facilitating cross-border remittance to be many folds faster. He was speaking in the capacity of Group Head for International Financial Services and Financial Institution. Elsafty also noticed that remittance plays an important role in improving a country’s GDP, and it would not take a lot of time for people to switch from old channels to cost-effective wallets.
Chances for Ripple Labs Victory in the United States are Diminishing
The Ripple Labs lawsuit is far from over. SEC is not only keeping the case alive but is also adding more obstacles to the narrative. The regulatory agency has filed a counter-motion to keep the movants from entering the court. On the other hand, SEC lawyers are preparing for a case extension in case the movants are granted permission to be added to the court. No matter which way the gavel strikes, Ripple would sustain the damages.
While Ripple Labs was charged with a $1.38 billion lawsuit, the company top brass was busy making deals left and right outside of the United States. Chris Larson has even gone on to issue a depleted statement that if the government does not make the environment for crypto friendlier, most crypto enterprises will leave the region in search of better and more opportune markets.
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