The “African Blockchain Report 2022” report by CV VC in collaboration with South Africa’s Standard Bank reveals that Ripple and XRP are already utilized in 13 African countries. In the report, which was released in late April 2023 but has gone unnoticed in the XRP community, an entire page is dedicated to the technology of Ripple.
According to the report, the opportunities for digital payment service providers like Ripple in Africa are overwhelming. While the region has already made significant progress in recent years, much of the potential is still untapped, it says. By 2025 alone, electronic payments revenue is expected to grow 20% to $40 billion.
However, there are still gaps in the continent’s financial system that leave countless people unbanked and many African businesses. Crypto is also the solution due to the high penetration of cell phones.
Yet, less than 10% of total payments in Africa are currently made digitally. According to the report authors, blockchain and crypto-enabled remittances can save an average of 6.3%, and in sub-Saharan Africa, 8.46% in fees compared to traditional methods.
Ripple Already Well-Positioned In Africa
The report effectively provides a pitch for Ripple and its XRP based On-Demand Liquidity (ODL) solution. It also unveils a map of the countries in which the company is already active: Benin, Burkina Faso, Cote d’Ivoire, Egypt, Ghana, Kenia, Mali, Niger, Nigeria, Senegal, South Africa, Togo and Uganda.
The authors write that both financial institutions and individuals will benefit from Ripple’s modernization of the African payments system:
Ripple’s payments solution, On-Demand Liquidity, enables organizations to settle global payments in real-time at a fraction of the cost without tying up working capital in destination accounts. By leveraging the digital asset XRP as a bridge currency, funds can be sent and received in local currency on either side of a transaction.
Thanks to Ripple’s growing global network, multinational financial institutions can also benefit, according to the report. They can reduce costs by eliminating upfront funding while gaining access to payout rails around the globe.
As digital payments innovation and crypto adoption broaden, Ripple is partnering with local financial institutions and fintechs to bring the benefits of better cross-border remittances to the region, including regional payment interoperability and seamless money movement across the continent.
A special mention is also made of Ripple’s partnership with MFS Africa, which was announced in the first quarter of 2023. According to the report, the South Africa-based provider is using ODL to create ISO20022-compliant payment services with blockchain-based payment rails.
XRP Price Needs To Hold Crucial Support
At press time, the XRP price stood at $0.4259. Price needs to hold support at $0.41 to avoid falling back into the November 2022 to mid-March 2023 trading range. On the upside, $0.44 is the most important resistance, while the 200-day EMA at $0.4354 could also provide stronger headwinds.
Featured image from iStock, chart from TradingView.com
