Towards the end of intermediaries? – In the case of remittance, this could well turn out to be true and it is Western Union that has to worry. the Lightning Network, the ultra-fast overlay of Bitcoin, is gradually imposing its model. A value proposition with obvious accents, namely instant transfers anywhere in the world and at 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. Today is a new partnership between CornerCorner and bitnob which could well make sparks. They just set up a way to transfer our money across borders, and that, in a flash. From now on, to transfer our fiat currencies, a means is essential, the Bitcoin Lightning.
In theory, transferring money between Europe and Africa requires a number of intermediaries. Typically behemoths like Western Union. However, as we know, these transactions take time, a lot of time. Days, even weeks. And all of this comes at a high cost to users. From 5% to nearly 25% of fees deducted from the amount sent depending on the conditions and the countries concerned. Moreover, it is not less than $40 billion which thus circulate each year, according to 2020 estimates. 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 mode of transfer could change their lives. Through their app Send Globallythe English pound (GBP) and the euro can circulate as far as Africa and be instantly converted into local currencies: the Naira (NGN) of Nigeria, the Kenyan Shilling (KES) or the Ghanaian Cedi (GHS).
Instantly and inexpensively, the money lands in the recipient’s bank account.
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Bitcoin, a game-changing innovation for Africa?
Danny Scott, the CoinCorner CEO 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, provides solutions to problems that had not hitherto had any. And it may well be that Bitcoin’s Lightning Network has found a way to help many people in difficulty.
“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 so cheap. »
Nigeria is one of the countries most affected by remittance and it is also one of the countries where the bitcoin adoption rate is the highest. This is obviously no coincidence. This democratization in Africa is happening only because Bitcoin fills a real need among a population that is often unbanked. Not banked elsewhere, because considered uninteresting by the 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 beast. Its technology remains incidental. We can be interested in it, but there is no fundamental need to do so. This, because we are banked, we have access to savings and are endowed with a hard currency. At least for now. In Africa, between lack of banking, fluctuating currency and hyperinflation, Bitcoin is a necessity. And maybe that’s what will be behind its massive adoption.
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