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The case for crypto in developing countries is getting stronger.
This is due to the newest development from the United Arab Emirates. UAE’s financial services provider LuLu Exchange has partnered with Pakistan’s leading Alfalah bank to facilitate remittances – with Ripple.
Specifically, to aim of the partnership is to facilitate remittances from UAE to Pakistan. Cross-border payments are one of Ripple’s primary use cases. Blockchain tech could now benefit the 1.5 million Pakistanis who live in the UAE. Ripple network could help them send money back home – quickly and at a low cost.
Significantly, Pakistan is the 6th largest receiver of remittances in the world. Furthermore, the Pakistani diaspora makes up 15% of the UAE population.
The two institutions have partnered with RippleNet, a global payments system offering blockchain solutions. Ripple functions as a payment settlement exchange, similar to the SWIFT network. The system uses the XRP token to allow exchanges on the network.
The Managing Director of RippleNet for the region, Brooks Entwistle, stated that the partnership was crucial for Ripple.
“As one of the largest remittance markets, it is a critical partnership to bring more financial access and inclusion to the region,” he stated.
Atif Bajwa, CEO of Bank Alfalah, said that the bank would continue implementing the best and most sophisticated solutions for its clients.
“The partnership with RippleNet will help us deepen our partnership with Lulu Exchange and strengthen the financial bridges between Pakistanis residing in the UAE and their families back home,” he said.
Adeeb Ahamed of LuLu Exchange said that the company pledges to make remittances more affordable and reliable for their customers.
“We firmly believe that the partnership with Bank Alfalah and RippleNet will help foster new opportunities,” he said.
Upcoming Crypto Regulation
The adoption of Ripple could influence the upcoming decision to regulate crypto. At this point, Pakistan’s High court has given three months to Imran Khan’s government to regulate crypto. Therefore, the government should come up with new regulation by January 2022.
A large part of global crypto demand comes from money transfers in developing nations. That is the case in Pakistan as well. Due to increasing adoption, authorities are under pressure to regulate crypto.