After collaborating with Ripple to power remittances in Thailand, SBI Remit is going to leverage Bitcoin Blockchain via BitPesa. With the global remittance market going to grow to over $640 billion, SBI is going to immerse itself into the crypto space as it mentions the plan to expand its blockchain solutions.
SBI remit in partnership with BitPesa to leverage Bitcoin Blockchain
Japanese giant SBI holdings have always been crypto-friendly and now it has taken another step forward. SBI Group’s subsidiary SBI Remit is now taking on Bitcoin Blockchain to allow half a million of customers to send money to Africa.
The faster and reliable remittances will be made to Africa in collaboration with BitPesa. BitPesa “is a digital foreign exchange and payment platform that leverages blockchain settlement for fast, cost-effective payments to and from Africa.”
BItPesa is a licensed organization that utilizes bitcoin blockchain to move the money across borders instead of relying on the middlemen like banks that involves moving US dollars first and then converting them into African currencies like Nigerian naira.
A layer of trust and transparency will be added through BitPesa that has obtained multiple international licenses as shared by Nobuo Ando, SBI Remit director:
“Many companies are doing trade with African countries and they are suffering from the high cost and the slow speed and not very precise administration. So this is the market that we would like to go in, together with Bitpesa.”
This partnership between BitPesa and SBI Remit enables direct transfer between the currency pairs i.e. the Japanese Yen and the fiat currencies of Nigeria, Kenya, Tanzania, the Democratic Republic of Congo, Ghana, Morocco, and Uganda. Moreover, its custom treasury tool built on Bitcoin blockchain will help in providing liquidity for small and medium-sized enterprises.
After Ripple, Its Bitcoin Blockchain this time
As for volatility, the treasury services of BitPesa will allow settlement in the crypto and fiat currencies as its founder Elizabeth Rossiello says, “we’re open to using digital or fiat currencies to settle between us.”
However, this is not the first time SBI Remit has come in partnership with the company utilizing blockchain technology. Previously, SBI Remit joined Ripple, the company behind the world’s 3rd largest cryptocurrency XRP. With Ripple, the money transfer giant targeted Thailand,
“SBI Remit, in collaboration with Siam Commercial Bank (SCB), is using Ripple’s blockchain enterprise solution, xCurrent, to power real-time remittance payments between Japan and Thailand.”
Moreover, SBI Holdings launched SBI Ripple Asia that basically targets the regional banks that are looking for cheaper and faster way to move money.
Global remittances to grow more than $640 billion
According to the World Bank report,
“Global remittances, which include flows to high-income countries, grew 7 percent to $613 billion in 2017, from $573 billion in 2016.”
However, BitPesa is reportedly able to provide these services for about 3% of the total transaction.
With $22 billion, Nigeria is among the top remittance recipients., the report notes,
“Sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4 percent. Major barriers to reducing remittance costs are de-risking by banks and exclusive partnerships between national post office systems and money transfer operators.”
Furthermore, “Remittances to Sub-Saharan Africa accelerated 11.4 percent to $38 billion in 2017, supported by improving economic growth in advanced economies and higher oil prices benefiting regional economies. The largest remittance recipients were Nigeria ($21.9 billion), Senegal ($2.2 billion), and Ghana ($2.2 billion).”
As reported by the World Bank report, “Remittances are expected to continue to increase in 2018, by 4.1 percent to reach $485 billion. Global remittances are expected to grow 4.6 percent to $642 billion in 2018.”
It only makes sense that SBI is going to immerse itself more into the crypto world as shared by Ando, “We are planning to expand some blockchain solutions for international remittance.”