National Bank of Egypt, the major financial institution, has signed a cooperation agreement with Ripple to establish new channels for inward remittances.
On February 11, it has been reported by Youm7, a local daily news site, that the agreement reportedly makes the National Bank the country’s first to venture into the blockchain sector.
According to data from the World Bank, the global remittance market, referring to the money or goods that migrants send back to family and friends in their home countries, is expected to reach $597 billion in 2020.
However, Egypt was projected to be the fifth-highest remittance recipient country worldwide in 2019 ($26.4 billion), following India, China, Mexico, and the Philippines.
By joining the RippleNet network, which includes over 300 international banks and institutions, the National Bank ostensibly hopes to access new markets and to support and extend its remittance business in the Gulf region in particular.
Dalia El-Baz, the Chair of the National Bank, said that he expects RippleNet to grow exponentially and to thus provide a boost to the institution’s liquidity management and foreign currency earrings.
In accessing faster and more efficient cross-border payments mechanisms, the National Bank hopes to broaden its customer base, while assuring users of full compliance with international insurance standards and high levels of operational network security on the blockchain.
In signing up for RippleNet, the Egyptian bank joins other correspondent banks and market participants in the Arab Gulf states, as well as institutions in financial hubs such as the United Kingdom and the United States.
Thus, as of press time, Ripple’s native token XRP is trading at roughly $0.29, up 6.15% on the day, and almost 11% on the week.
Source: youm7.com | cointelegraph.com