Ripple has announced a new partnership with Egypt’s largest bank, the National Bank of Egypt (NBE), so that the financial institution can use the company’s RippleNet to connect to the UAE-based financial services company LuLu Exchange.
After a announcement The aim of the partnership is to support NBE in processing cross-border transactions from the UAE to Egypt. Currently, Egypt is one of the largest remittance recipients in the world, having received $ 24 billion in the last year alone. It falls behind India, China, Mexico and the Philippines.
Remittances play a “significant role in a country’s gross domestic product” as they represent money sent home to family and friends. Remittance providers are currently working with the traditional global payments infrastructure, which means that “cross-border transfers are costly and slow”.
As part of the partnership, both NBE and LuLu Exchange will use RippleNet, which uses blockchain technology to move funds around the world at a fraction of the cost of the traditional financial system.
Hesham Elsafty, group leader for financial institutions and international financial services at NBE, was quoted as saying:
“NBE’s partnership with Ripple will help improve overall efficiency by allowing NBE to form new alliances in broader markets with lower costs and shorter integration times.”
The partnership comes months after Ripple was sued by the US Securities and Exchange Commission, which claimed Ripple and two of its executives who are major XRP holders had “over $ 1.3 billion through an unregistered, ongoing offering of digital asset securities “.
The SEC lawsuit resulted in a drop in XRP prices. While the cryptocurrency later recovered, it was delisted from several major trading platforms in the United States. While most delisted the token, some like Uphold sided with Ripple.
Pointed out at the time that the SEC’s goal is to protect consumers, Uphold believes it is hard to see “like a ruling that essentially renders XRP worthless and inflicts billions in losses on retail investors “corresponds to this goal.
Ripple itself has argued that the lawsuit “has already affected countless innocent XRP retailers unrelated to Ripple”. It added it “clouded the water for exchanges, market makers and traders.”