XRP Price Surges as Ripple Strikes a Deal with Onafriq, Powering African Remittances
Ripple's strategic alliance with Onafriq marks a new era in African finance. XRP surges in value after DFSA approval, alongside Bitcoin, Ethereum, and Litecoin.
Ripple has joined forces with South African fintech innovator Onafriq. This collaboration is aimed at streamlining remittances across 27 African nations, ensuring swift and cost-effective transactions. In parallel, Ripple's cryptocurrency, XRP, has captured market attention with a robust price rally, spurred by the company's triumph in a high-stakes legal battle and recent regulatory approval in Dubai.
TL;DR:
- Ripple strikes a deal with a South African fintech firm Onafriq in order to expand the international payment structure of Africa.
- This partnership will enable three new payment corridors, connecting 27 African nations with important global markets - the UK, Australia, and Gulf states
- Africa will now be able to bypass traditional and expensive payment systems, contributing to faster domestic development, partially thanks to Ripple.
- XRP's value has seen a significant increase of more than 43%, thanks to Ripple's legal victories and a favorable nod from Dubai's regulators.
Expanding Financial Infrastructure in Africa
Ripple's strategic partnership with Onafriq, a leading South African fintech firm, signifies a substantial step towards enhancing remittance services across Africa. The move is set to benefit both individuals and businesses by facilitating quicker and more cost-effective cross-border payments.
By leveraging Ripple’s blockchain technology, the collaboration intends to open three new payment corridors. These digital pathways will directly connect African nations with key global markets: the United Kingdom via PayAngel, the Gulf Cooperation Council countries through Pyypl, and Australia with Zazi Transfer.
Dare Okoudjou, Founder & CEO at Onafriq: “Our mission is to make borders matter less when it comes to payment within, to, and from Africa. We are advancing this mission through our partnership with Ripple, which is already enabling new types of connections with fintechs such as PayAngel, Pyppl and Zazi Transfer. These connections are set to enable fast, secure and low-cost remittances at scale between Africa and the rest of the world, and represent a bold first step for our crypto strategy to leverage blockchain technologies to amplify our impact on people and businesses on the continent.”
The practical implications of this partnership are profound. For instance, a customer in the UK using PayAngel can now send money to a relative in Ghana with speed and ease that were previously unattainable. Similarly, businesses using Pyypl in the GCC can conduct transactions with partners in any of the 27 African countries within Onafriq's network, bypassing the traditionally sluggish and expensive banking channels.
Recent Price Ascent of XRP
Adding to the bullish sentiment, XRP received a significant vote of confidence from one of the world’s premier financial hubs, Dubai. The Dubai Financial Services Authority's (DFSA) approval for the use of XRP within the Dubai International Financial Centre (DIFC) opens up a realm of possibilities for Ripple.
This includes new avenues for cross-border payments and other financial services that can utilize XRP, setting a precedent for other financial centers to possibly follow suit. Tech companies operating in Dubai can now integrate XRP into their services, similar to Bitcoin, Ethereum, and Litecoin, which are also approved by the DFSA.
This combination of positive developments coupled with the recent court victories of Ripple is fueling a steady price increase of XRP - more than 43% up since October 18. This growth is significant even in contrast to the already overall crypto market.
The Final Take
The dual developments of Ripple's partnership with Onafriq and the regulatory approval in Dubai represent a significant step forward for Ripple and XRP. The African remittance initiative promises to streamline financial transactions for millions, while the endorsement from Dubai’s financial authorities provides a stable and promising environment for XRP's growth.
As an emerging economy, Africa could play a major role in the newly developing financial ecosystem. Fintech services, such as Ripple Payments, Moove, or Paymob remain attractive for investors because of the wide unaddressed market. Establishing strong financial connections between Africa and major developed economies could result in a rapid increase in living standards for African citizens, which in return yields further economic growth.
Also Read: Cryptocurrency in Latin America: The Game Changer for Emerging Economies
Africa, together with Latin America, is also becoming increasingly important specifically in the crypto sector. Citizens of these less developed countries are now using blockchain technology the way it was intended to - gaining financial sovereignty independently of the state. In light of these new developments, it is safe to say that crypto is finding its biggest practical applications in places where it is the most needed.
