Ripple and XRP Transforming the African Continent
The "African Blockchain Report 2022" report conducted by CV VC in collaboration with South Africa's Standard Bank highlights the widespread adoption of Ripple and XRP in 13 African countries.
Although released in late April 2023, this report has not received much attention from the XRP community. It devotes a complete page to the technological advancements of Ripple.
The report emphasizes the immense opportunities for digital payment service providers like Ripple in Africa. While significant progress has been made in recent years, the region still has untapped potential. Electronic payments revenue is projected to increase by 20% to $40 billion by 2025.
Despite this potential, there are gaps in the continent’s financial system, leaving numerous individuals and businesses without access to banking services. Cryptocurrency presents a solution, particularly due to the widespread use of cell phones in Africa.
Currently, less than 10% of total payments in Africa are made digitally. The report’s authors suggest that utilizing blockchain and cryptocurrencies for remittances could result in average fee savings of 6.3%, and in sub-Saharan Africa, the savings could be as high as 8.46% compared to traditional methods.
Ripple has already established a strong presence in Africa. The report showcases a map displaying the countries where Ripple is actively operating, which include Benin, Burkina Faso, Cote d’Ivoire, Egypt, Ghana, Kenya, Mali, Niger, Nigeria, Senegal, South Africa, Togo, and Uganda.
The authors highlight how Ripple’s On-Demand Liquidity (ODL) solution, based on XRP, benefits both financial institutions and individuals. It enables real-time global payments at a significantly lower cost without tying up working capital in destination accounts. By utilizing XRP as a bridge currency, funds can be sent and received in local currency on both sides of a transaction.
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Furthermore, the report mentions that multinational financial institutions can leverage Ripple’s expanding global network to reduce costs and gain access to payout rails worldwide.
Ripple collaborates with local financial institutions and fintech companies to facilitate better cross-border remittances in the region, including regional payment interoperability and seamless money movement across the continent.
The report also highlights Ripple’s partnership with MFS Africa, announced in the first quarter of 2023. MFS Africa, a South Africa-based provider, employs ODL to develop ISO20022-compliant payment services using blockchain-based payment rails.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
