The National Bank of Egypt has officially become the first bank in the country to use blockchain by joining the RippleNet Network.
The signed agreement between the National Bank of Egypt and Ripple means the bank will now establish new channels for inward remittances and opens up access to new markets, and to support and extend its remittance business, particularly in the Gulf region.
According to 2019 World Bank data, the global remittance market is expected to reach $597 billion by 2021.
Egypt is the 5th largest country in remittances recipient globally, at $26.4 billion as of 2019, after India, China, Mexico, and the Philippines.
The National Bank of Egypt now joins over 300 international banks and institutions on the Ripple Network and is expected to boost the bank’s foreign currency liquidity management, enable faster access and more efficient cross-border payment mechanisms.
Ripple is a real-time gross settlement system, currency exchange and remittance network built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes. Ripple purports to enable secure, instantly and nearly free global financial transactions of any size with no chargebacks.