RippleNet, a decentralized payment network, will be used to connect the National Bank of Egypt and LuLu International Exchange, a financial service provider in the UAE.
According to a press release issued on Tuesday, the National Bank of Egypt (NBE) has partnered with Ripple (XRP) to establish a cross-border payment channel with the United Arab Emirates through RippleNet.
Hesham Elsafty, head of the NBE Financial Institutions and International Financial Services Department, explained in the announcement: “Egypt ranks among the top five in the world in terms of remittances received from its overseas diaspora communities.”
He added that international remittances play a very important role in the Egyptian economy, so the bank “has been committed to developing and enhancing the infrastructure related to this business.” Last year alone, the country received 24 billion U.S. dollars in remittances. .
According to the announcement, the partnership will allow NBE to establish contact with LuLu International Exchange, a UAE-based financial service provider, through RippleNet (a blockchain-based institutional payment provider network). NBE and LuLu focus on decentralized technology, aiming to make up for some of the “inherent frictions” in traditional payment infrastructure and make cross-border payments “cheaper, faster, and more reliable.”
Elsafty added: “The partnership between NBE and Ripple will enable NBE to establish new alliances in a broader market with lower costs and faster integration times, thereby helping to improve overall efficiency.”