Bitnob partners with Strike to spearhead the improvement of cross-border remittance payment technology in Ghana, Kenya and Nigeria.
Strike announces plans to improve remittance payments into Africa after partnering with Bitnob. The firm announced this at the AfroBitcoin event, where CEO Jack Mallers addressed the people.
The remittance payments will be improved thanks to the Bitcoin Lightning Network. The Lightning Network struck Nigeria, Ghana and Kenya.
Strike’s cross-border payment solution
Jack made the announcement in Accra, Ghana, alongside Bernard Farah, the CEO of Bitnob. The firm also executed a short demonstration of how the technology works. The Lightning network represents a layer-2 payments network built atop Bitcoin.
Many countries in Africa should take advantage of the Lightning network. The network contains a feature called ‘Send Globally”. The feature enables instant, low-cost payments to Africa. The feature does not require people to use Bitcoin themselves.
Solving cross-border payments in Africa using Bitcoin will provide a major economic boost to countries. Dollar payments are instantly converted to the local currency,b such as Nigerian naira, Ghanaian cedi or Kenyan shillings.
The local currency is deposited directly into the recipient’s bank account, Bitnob or mobile money wallet.
For example, over $17.2 billion was sent in remittances to Nigeria in 2020 alone. World Bank indicates that for every $200 sent in 2020, it cost the sender $17.8 (8.9%) in fees. The total transfer fees amounted to about $1 billion.
Other remittance services
By getting rid of remittance fees and using Bitcoin payment rails, Nigerians will benefit financially. The situation remains the same in both Ghana and Kenya.
By way of Comparison, remittance services such as Wise take a small commission. Western Union charges upward of 10% for money transfers. The elimination of cross-border payments will therefore spur economic growth in these countries.
