By George Ward
According to the joint report by CV VC and South Africa’s Standard Bank, titled “African Blockchain Report 2022,” Ripple and XRP have been implemented in 13 African countries. Despite being released in late April 2023, the report was largely unnoticed within the XRP community.
Nevertheless, it dedicated an entire page to examining the Ripple technology and its rising adoption rate in many African jurisdictions.
13 African Countries Use Ripple And XRP
The report highlights the immense opportunities for digital payment service providers like Ripple in Africa. Although the region has made significant strides in recent years, much of its potential is yet to be explored.
Per the report, electronic payments revenue is projected to grow to $40 billion, with a 20% increase expected by 2025. Despite the progress made in Africa’s financial system, significant gaps still leave numerous individuals unbanked and many businesses needing help accessing financial services.
With the high prevalence of smartphones, cryptocurrency has emerged as a potential solution to this problem. Meanwhile, the current percentage of digital payments in Africa remains below 10%, indicating significant growth opportunities in this sector.
The report’s authors argue that implementing blockchain and crypto-enabled remittances could lead to an average savings of 6.3%, rising to 8.46% in sub-Saharan Africa, compared to conventional methods. The report is a compelling argument for Ripple and its On-Demand Liquidity (ODL) tech solution.
Additionally, it features a map displaying the countries where the company is already operating, including Benin, Burkina Faso, Togo, Cote d’Ivoire, Kenya, Egypt, Mali, Niger, Ghana, Senegal, South Africa, Nigeria, and Uganda. The report’s authors noted that the modernization of Africa’s payments system by Ripple would result in advantages for financial institutions and individuals.
According to the report, Ripple’s expanding global network can benefit multinational financial institutions. The report also references Ripple’s collaboration with MFS Africa in the first quarter of 2023.
It also said that the South Africa-based provider uses ODL to establish ISO20022-compliant payment services using blockchain-based payment rails.
Ripple’s CEO Speak On Dubai Expansion
Ripple’s CEO, Brad Garlinghouse, was a keynote speaker on the first day of the ongoing 2023 Dubai Fintech Summit. During his speech at the event, Garlinghouse announced a significant development that captured the audience’s attention during his presentation.
Besides providing his perspectives on crypto utilities and regulatory perspectives, the Ripple CEO also utilized the platform to unveil the company’s plans for expansion. Meanwhile, Ripple remains involved in a contentious legal dispute with the US Securities and Exchange Commission (SEC), which accused the company of conducting an unregistered securities offering by selling XRP tokens.
During his presentation, the Ripple boss disclosed that the primary reason for the company’s expansion into the Middle East is the crypto regulatory clarity offered by Dubai authorities. He also noted that given that 20% of Ripple’s customers are located in the MENA region, it is not surprising that Dubai is emerging as a significant global financial center for the growth and advancement of digital assets innovation.
Meanwhile, Observers believe that the 20% figure cited by Garlinghouse pertains to Ripple’s user and customer base in countries in the Middle East and North Africa region and its surrounding areas.