XRP Mentioned in UN Paper on Crypto in Africa: Details

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Vladislav Sopov

Here’s How XRP Cryptocurrency and Ripple’s Payment Solutions Can Help in ‘Banking for the Unbanked’

Contents

XRP Can Power Next-Generation Payment Services in Africa, UN Report SaysInvestment, Trust and Regulation Needed for Crypto Adoption in Sub-Saharan Africa

Community-run account of XRP enthusiast @WKahneman has shared highlights from the latest Africa Cryptocurrency Outlook Report by the United Nations Development Program team.

XRP can power next-generation payment services in Africa, says UN report

The United Nations Development Program (UNDP), a United Nations organization focused on supporting countries and communities in the fight against poverty, has shared its Cryptocurrency in Africa: Alternative Opportunities to Advance the Goals of sustainable development ? paper. XRP tokens and Ripple Inc. funds transfer solutions are mentioned as useful instruments.

A report published this January by the UN, “Cryptocurrencies in Africa”. Talks about BTC, stablecoins in general, smart contracts (including ETH) but has a decent passage noting $XRP regarding cross-border payments. Suggests derivatives to offset volatility. Take a look: 1/2https://t.co/NhwIII0VPz pic.twitter.com/LWYLbRS5T7

WrathofKahneman (@WKahneman) January 18, 2023

The authors of the thesis analyzed a use case of XRP, namely the use of the token in payment corridors for low-cost and almost instantaneous remittances. According to the text, XRP can link two local fiat currencies profitably.

Through Ripple’s line of credit (LoC) service, a conversion between the two currencies can be arranged at a locked exchange rate. Then the parties can repay the credit on a convenient schedule.

At the same time, since XRP is a non-fiat currency pegged altcoin, the issue of volatility is inevitable when using it in cross-border remittances. As such, XRP should be covered by additional financial instruments.

Investments, Trust, and Regulation Needed for Crypto Adoption in Sub-Saharan Africa

The thesis authors proposed to experiment with industry-wide cryptocurrency derivative services to allow payment processors to protect their capital against spikes in volatility.

Additionally, some recommendations for nation states in the UNDP paper include supporting local cryptocurrency products, establishing clear regulatory frameworks, and increasing trust in digital assets as instruments. of payment and as a means of investment.

As covered by U.Today previously, Ripple Inc. is expanding its presence in Africa. In December 2022, its partner began sending funds from 19 African states to Europe.

Nala, a Tanzanian fintech, provides the technical basis for this development.

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