The National Bank of Egypt (NBE) wants to use RippleNet’s technology to handle cross-border transactions between its own country and the United Arab Emirates (UAE)
Blockchain firm RippleNet has announced that National Bank of Egypt will use its technology to process cross-border transactions. With this step, the bank wants to enable Egyptians living in the UAE to make faster transactions.
„We are pleased to announce today our partnership with the National Bank of Egypt (NBE), the largest bank in the North African country. Through Ripple’s global payment network RippleNet, the NBE has partnered with UAE – based financial services provider LuLu International Exchange – part of LuLu Financial Group-to process cross-border payments from the UAE to Egypt“, so Ripple.
This latest development is of great importance for Ripple, as Egypt received remittances of US $ 24 billion in 2020. This makes the country one of the five largest recipients of remittances worldwide, with India, China, Mexico and the Philippines at the top.
According to the press release, LuLu will handle cross-border transfer payments from the UAE to Egypt on behalf of the bank. Hesham Elsafty, Group leader for financial institutions and international financial services at the NBE, confirmed that Egypt is one of the world’s leading payers: „Given the important role that remittances play in the Egyptian economy, the Egyptian Central Bank aims to continuously develop and improve the infrastructure for this business sector“ he added.
According to the bank manager, the partnership between NBE and Ripple is positive as it helps to improve the bank’s overall efficiency by establishing new alliances in other countries at lower costs and with faster transaction periods.
The ongoing proceedings of the US Securities and Exchange Commission (SEC) against Ripple did not stand in the way of this development. The SEC accuses the blockchain company of issuing and selling unregistered securities in the form of XRP tokens. Ripple maintains his innocence and argues that XRP is not a security.