The Egyptian National Bank has joined Ripple’s payment network RippleNet. The bank plans to use RippleNet as a portal to improve remittances. It is now the first bank in the country to take advantage of the possibilities that blockchain technology and RippleNet have to offer its customers.
13 February, 2020 | AtoZ Markets – The National Bank of Egypt (NBE) is the country’s largest bank by total assets. The Egyptian National Bank has joined the Ripple’s blockchain-based payments network RippleNet.
The NBE has signed a cooperation agreement with Ripple and claims to be the first bank in Egypt to use blockchain technology, local newspaper Youm7 reported Tuesday. Moreover, the bank seeks to facilitate faster and cheaper cross-border payments via RippleNet.
Global Remittance Market
The global remittance market is the money or goods that migrants send to family and friends in their home countries. Egypt is one of the top five recipient countries of money transfers in 2019 ($ 26.4 billion). It is after India, China, Mexico and the Philippines, according to the World Bank.
In 2018, migrants also sent $ 29 billion in remittances to this Middle Eastern country. It is expected to reach $ 597 billion in 2020, according to data from the World Bank.
Ripple recently stated that it has crossed 300 customers and has seen RippleNet transactions increase 10x year-over-year. By joining the RippleNet network, the National Bank ostensibly hopes to access new markets. The bank also hopes to support and extend its remittance activity in the Gulf region in particular.
Safety Tests Before the Agreement Signing
NBE President Hisham Okasha said the agreement would add a “new and significant tributary” for receiving remittances from correspondents via RippleNet. Moreover, vice-Chairman of the Board Dalia El-Baz said he expects RippleNet to experience exponential growth, thereby boosting the institution’s liquidity management and foreign currency earrings. Furthermore, the head of the Treasury and International Financial Relations group, Hisham Al-Safti said:
All security tests were carried out before the signing of the agreement by the bank’s security services to avoid loopholes in the implementation.
The National Bank hopes to broaden its client base. Moreover, it wants to ensure that users are fully complying with international insurance standards and high levels of operational network security on the blockchain.
The NBE joins the growing number of financial companies that have also partnered with Ripple. Most recently, these include International Money Express (Nasdaq-listed remittance firm), Finastra (London-based fintech firm), and MoneyGram (money transfer company) etc.
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