Blockchain technology is gaining ground in the money transfer space. The crypto company Ripple, for example, has just announced a partnership with Onafriq, an African fintech. The goal: to facilitate remittances between Africa and other regions of the world.
The partnership between the crypto company Ripple and Onafriq
At Ripple’s annual conference in Dubai, the crypto company (along with Onafriq) revealed three new ways of transferring money based on blockchain. These solutions will allow Onafriq users in Africa to send and receive money from customers in:
- PayAngel in the UK,
- Pyypl in the Gulf Cooperation Council (GCC),
- Zazi Transfer in Australia.
Onafriq serves 400 million mobile wallets in Africa, while crypto firm Ripple covers 90% of foreign exchange markets.
The partnership is based on XRP Ledger technologywhich uses XRP crypto to make fast, transparent and inexpensive transactions.
This collaboration intended to :
- facilitate cross-border financial exchanges,
- eliminate traditional obstacles,
- making money transfers more accessible to a diverse audience.
THE benefits of crypto blockchain thus combine with the expertise of Ripple and Onafriq to offer an innovative solution to users in Africa and around the world.
The challenges and prospects of blockchain
The partnership of the crypto company Ripple with Onafriq comes in a context of strong growth in the money transfer market, particularly in Africa.
Blockchain offers various benefits such as fee reduction, security and traceability. However, it also faces challenges related to crypto regulation, trust, and user education.
Ripple, still in a legal dispute with the SEC, recently obtained approval for its crypto token from the Dubai Financial Authority. The company also plans to expand its products and licenses to facilitate payments between businesses and SMEs.
Ripple and Onafriq join forces to offer new money transfer opportunities based on the crypto blockchain. Regulatory uncertainties nevertheless remain challenges to be overcome.
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