Using Bitcoin with NOAH for African Remittances
As the African diaspora turns to alternative methods to transfer funds, including cryptocurrencies, this article discusses the benefits of using Bitcoin and NOAH for remittances to Africa.
In recent years, remittances from the African diaspora have become a vital source of income for African countries. The African diaspora is a global community of people of African descent who have settled in other parts of the world, particularly in Europe and the Americas. With estimates of upwards of 350 million Africans living abroad (22.5% living in Europe), the African diaspora would be the world's third-largest country if it were a nation.
The African diaspora plays a vital role in the economic development of their home countries. As a share of GDP, several African countries are highly dependent on remittances abroad. In 2021, for example, remittances accounted for 27% of GDP in Gambia, 23.9% of GDP in South Sudan, and 23.5% in Somalia — making them among the top countries worldwide in remittance dependence.
Despite the critical role of remittances from the African diaspora in the economic development of recipient countries, several factors can pose challenges to the successful transfer of funds.
- Fees: High fees and lack of access to formal financial institutions often force African diaspora members to use informal channels, such as money transfer agents or informal networks, to send money to their home countries.
- Infrastructure: The limited financial infrastructure in some African countries can make it difficult for individuals to access formal financial services, hindering the ability to send and receive money and limiting the capacity of these countries to track and regulate financial flows effectively.
- Politics: Political instability and conflict can disrupt financial systems and hinder access to money transfer services.
- Currency exchange and conversion issues: There are often significant differences in exchange rates and restrictions or limitations on the ability to convert certain currencies, which can also pose challenges to successfully transferring funds to certain African countries.
Throughout Africa, there are 41 different currencies (many of which have low liquidity and high volatility), and many African countries have remittance regulations, making it difficult to transfer money most cost-effectively. This poses significant challenges for those wishing to transfer funds across borders.
The transfer of funds across borders in African countries poses a significant challenge due to the low liquidity and high volatility of the currencies in the region. In addition, foreign investment in the continent is limited, and access to international financial markets is scarce, making it difficult for individuals and businesses to move money between nations. These conditions have directly impacted the economics of sending and receiving countries, as fluctuations in exchange rates can cause discrepancies in the amount of money transferred and make budgeting and forecasting difficult. Sadly, everyday people often suffer most from these economic pressures, as their currency's instability can make it hard for them to make ends meet.
Without access to international financial markets, Africa's infrastructure is limited, resulting in discrepancies in the amount of money received or sent, exacerbating the cost of living and further hindering economic development. In addition, this makes it difficult to budget and plan for the future, as it is hard to predict the outcome of a money transfer.
Even the various money transfer services, such as M-Pesa, WorldRemit, Western Union, Xoom, Transferwise, and more, struggle to provide a cost-effective way of transferring money in and out of the continent. While some offer lower fees, the average cost of transfers is still relatively high, reducing the amount of money that can be sent and received.
This large number of money transfer services available to individuals and businesses for sending and receiving money across borders can lead to choice paralysis. With so many options, finding the most cost-effective service that meets one's needs can be complex, especially for those unfamiliar with the different services and their fees. To further complicate matters, some of these services may not operate in certain African countries, making it even more challenging to select the best option.
This is where NOAH comes in.
Why NOAH is Better
The world has the technology to make things even better, so why not use it?
With NOAH, you can send money to over 150 countries in the world with just a few clicks on your smartphone. It's as easy as sending a text message, and you don't need to worry about the recipient having a specific type of bank account.
Let's break down the advantages:
- Security: With NOAH, you can enjoy peace of mind knowing that your personal information is protected by the latest security measures. Our platform is non-custodial, meaning you have full control over your funds. We use secure multi-party computation (MPC) and a signing pin to ensure your data is always protected. In the unlikely event of a disaster, our disaster recovery system ensures that your funds are safe and secure.
- Speed: NOAH transactions are fast and convenient, powered by the Lightning Network. The recipient will receive the funds instantly. However, it's important to note that this feature is only available if you already have Bitcoin (BTC). In some regions, such as Africa, purchasing BTC can be challenging as banks may not process transactions related to cryptocurrencies.
- Fees: NOAH transactions are currently fee-free, with only a small network fee required when making a transaction. This network fee is less than one-hundredth of one cent (<$0.0001). While this may not always be the case, currently NOAH does not charge any fees to use the app — not even one satoshi.
- No bank account needed: NOAH can be used by anyone with an internet connection. Because we're a progressive web application, you can use a smartphone, computer — whatever you want. All you need to do is to go to noah.com. That's it.
- Currency choice: With NOAH, you're using the most global currency and best store of value in the world — bitcoin. Bitcoin can be used by anyone, anywhere.
As NOAH grows, we plan on integrating with domestic payment systems to make real-time global transfers even more accessible. If you want to hold bitcoin, you can hold bitcoin. If you convert to the CFA Franc or the Dinar, you can do that too. The choice is yours. We're all about options.
How to Send Money with NOAH
It's so simple; even your grandma can do it.
- Go to NOAH.com and create an account.
- Add some sats to your wallet.
- Click "Send."
- Enter the recipient's Bitcoin address or Lightning Address.
- Choose how much you want to send.
- Press "Send Now."
That's it. Instant. No fees. Done.
With NOAH, we're making global payments better by giving you more choices, security, and speed. Try it out today!