Bitcoin’s Lightning Network, a bridge between Europe and Africa
Towards the end of intermediaries? – In the case of remittance, this may be true and Western Union is the one to worry about. The Lightning Network, Bitcoin’s ultra-fast overlay, is gradually imposing its model. A value proposition with clear accents, like instant transfers anywhere in the world and at a lower cost. Decryption.
The Lightning Network, the bank transfer revolution
In the corridors of the bear market, professionals in the crypto sector continue to build, brick by brick, unfazed. Now is a new partnership in between CornerCorner and bitnob which may produce sparks. They just set up a way to move our money across borders, and that, in an instant. From now on, to transfer our fiat currencies, one method is essential, the Bitcoin Lightning.
In theory, money transfers between Europe and Africa require a number of intermediaries. Behemoths usually like Western Union. However, as we know, these transactions take time, many hours. Days, even weeks. And all this has high value to users. From 5% to almost 25% of the fees deducted from the amount sent depending on the conditions and the countries concerned. Moreover, it is not less than $40 billion which thus rotates every year, according to estimates in 2020. A financial windfall for the intermediary and a dead loss for the user who has no choice but to accept these conditions. Finally, today, this is no longer the case.
Thanks to the partnership between CoinCorner and Bitnob based on the Lightning Network, users can now use Bitcoin to travel their funds between the UK, Europe and Africa. And this new way of moving can be change their lives. Through their app Ship worldwidethe English pound (GBP) and the euro can travel all the way to Africa and be immediately converted into local currencies: the Naira (NGN) of Nigeria, the Kenyan Shilling (KES) or the Ghanaian Cedi (GHS).
Instantly and inexpensively, the money goes into the recipient’s bank account.
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Bitcoin, a game changer for Africa?
Danny Scott, the CEO of CoinCorner also expressed himself on this subject. For him, the remittance sector is a huge opportunity for Bitcoin. The adoption of a technology can only take place if it meets a concrete need, providing solutions to problems that do not exist until now. And maybe Bitcoin’s Lightning Network has found a way to help many people who are struggling.
“Bitcoin’s borderless nature has always made it a great tool for transferring money around the world. And now with the Lightning Network, sending Bitcoin is instant and very cheap. »
Nigeria is one of the countries affected by remittance and it is also one of the countries where the bitcoin adoption rate is the highest. This is clearly not a coincidence. This democratization in Africa is only happening because Bitcoin fills a real need in a population that is often unbanked. Not banked elsewhere, as considered uninteresting by banks. Bitcoin, on the other hand, has no preconceptions. Everyone is free to use it or not. It is a tool for accessing savings and a simple means of exchange. No need for a bank account, just a smartphone.
In Europe, Bitcoin is a curious animal. Its technology remains incidental. We may be interested in it, but there is no fundamental need to do so. This, because we are banked, we have access to savings and we are endowed with hard money. Just for now. In Africa, between lack of banking, volatile currency and hyperinflation, Bitcoin is a necessity. And maybe what will happen behind its widespread adoption.
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