According to the core Xahau developer, Xahau will power the remittance services between Coopbank and inFTF.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
A new partnership between the Cooperative Bank of Oromia in Ethiopia and InFTF, non-profit organization, has created new use cases for the Xahau, a protocol forked from XRP Ledger codebase. Wietse Wind, founder of XRPL Labs and core Xahau developer, highlighted the milestone, citing that the team’s years of work have finally culminated in real solutions for real people.
Coopbank, as it is popularly called, plans to launch Ethiopia’s first blockchain-powered remittance service in collaboration with InFTF. This latest innovative solution aims to revolutionize cross-border money transfer. The remittance service will offer faster, more secure, and more affordable transactions to Ethiopians and residents of other countries.
Proud beyond words.
Our community, our friends, our team's years of work on XRP Ledger, Hooks on Xahau, @c14_team services, and @GateHub stablecoins have culminated in real solutions for real people.
Today, we see the start of the technology we're so passionate about solving… https://t.co/E21Jajyrsw
— WietseWind (🪝🛠 Xaman @XRPLLabs) (@WietseWind) October 3, 2024
Ethiopians in the diaspora can easily, quickly, and securely transfer funds in about 3 seconds. With the technology, they do not need to worry about the high fees traditionally associated with remittances. In the long run, this service will ensure more money reaches families and businesses back home. The Ethiopian bank and InFTF, launched this solution to target financial inclusion.
“The technology we’re advancing enables incredibly fast transaction settlements at a fraction of traditional costs, building a sustainable digital financial ecosystem accessible to everyone, especially in underserved regions,” Mr. Harath Chari, a Management Board Member of InFTF, stated.
For a while, Coopbank has sought strategies to bridge Ethiopia’s financial gaps. At the core of its search are innovative and customer-centric approaches. This latest debut of a blockchain-powered remittance solution is a significant milestone in Coopbank’s vision.
After expressing his excitement about the new development, WiesteWind mentioned that Xahau will support Coopbank in building the Hooks and integrations needed to stay compliant. Several community members attested to the role of XAH, Xahau’s native token in cross-border settlements and congratulated Wieste on the milestone achieved.
There is a growing need to boost cross-border transactions globally. Key proponents believe fiat cannot compete with solutions offered by Xahau’s speed and security. Compared to international wire transfers through platforms like SWIFT, which take anywhere between 1 and 14 days to clear and increase settlement risk, the Hooks related innovation takes only a few seconds.
These features have made it an attractive payment solution amongst several projects and organizations. Beyond Xahau, other innovative payment firms are also driving this remittance agenda positively. A few years ago, blockchain-empowered remittance platform SendFriend utilized Ripple Labs’ XRP-based xRapid to boost its remittance services for its users.
xRapid is an XRP-based solution that minimizes transactional costs for all international remittances. In SendFriend’s case, the XRP-based solution converted USD to XRP and Pesos. Over time, users could bypass conventional banking systems and banks’ exorbitant fees while completing transactions within seconds instead of days.
Around the same time, Saudi British Bank (SABB) launched its Instant Cross-Border Payment Service, which is powered by the Ripple blockchain solution.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
