- The National Bank of Egypt (NBE) teams up with Ripple to enable to process remittances to its own country quickly and inexpensively.
- It is the first bank from Africa to join RippleNet.
The Egyptian online portal “yourm7.com” announced that the National Bank of Egypt (NBE) has entered into a cooperation with Ripple. This cooperation is intended to open a new payment corridor for remittances to Egypt using Ripple’s payment technology. To date, the bank has not verified whether Ripple’s XRP token will be used in the partnership.
Ripple Signs cooperation agreement with National Bank of Egypt. RippleNet, which is the first of its kind among Egyptian banks towards providing more effective channels in the field of inward remittances, @navinblockchain
Feb 11 2020
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) February 11, 2020
Hisham Okasha, Chairman of the NBE, describes that the bank’s access to RippleNet will open up a new payment channel, which will speed up remittances from the Gulf region to Egypt in particular, and lead to lower costs. The NBE is the first bank from Africa to join RippleNet and use its software solutions.
Dalia El-Baz, NBE’s Vice Chairwoman, adds that the security mechanisms used meet international standards such as PCI and the requirements of all regulatory authorities, thus providing the highest level of security required.
Hisham Al-Safti, Head of the Ministry of Finance and International Financial Relations, added that various security tests were conducted with the bank’s information security departments prior to signing the agreement. This ensured that there were no gaps in the system. During the test phase, some changes were made to ensure that the efficiency of the payment channel reaches maximum output and that all security factors are fully met.
The NBE sees a great advantage in the immediate availability of liquidity, as this completely eliminates the use of nostro accounts for pre-financing of transfers. Representatives of the bank also announced that they intend to establish further expansion with partners from the United States of America, the United Kingdom or Canada.
NBE was founded in 1898 and is one of the oldest banks in Egypt. NBE’s services are aimed at private and corporate clients and include investment banking. NBE has a total of 16,200 employees and is headquartered in Cairo. NBE serves more than 413 branches and 3,823 ATMs in the country.
It also has branches in New York and Shanghai, as well as a branch office in Johannesburg, Dubai and Addis Ababa. According to the latest available annual report, the bank manages total assets of USD 63.2 billion and achieved a net profit of USD 595 million. The partnership with Ripple will primarily help the local population to obtain money faster and more cheaply.
New function in XRPL Ledger to increase security
Ripple also introduced a fundamental change in the last blog post. In the future, it should be possible to delete XRPL accounts within the ledger. This proposal was launched yesterday and is now waiting for an 80% majority. Only then will this development be finally implemented. Ripple says:
This feature allows XRPL accounts to be removed from the ledger and recover most of the reserve locked in the accounts for spam prevention.
These changes—and future changes—made through the amendment process will bring further trust to the ledger and ensure that XRPL continues to experience high performance without downtime.
The price of XRP follows the current market trend, rising by 5.97% to USD 0.2884.