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WrathofKahneman

Egypt & Ripple - a corridor one day?

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44 minutes ago, GrayFox said:

It is not just Egypt, it is Africa as a whole that make it the most ideal candidate for Ripple and I personally believe Interledger Protocol will play a huge role in shaping the future of this continent. 

I 100% agree with you here:

  1. Orange and MTN launch pan-African mobile money interoperability to scale up mobile financial services across Africa
  2. Mifos Initiative, a US-based non-profit that exists to support and collectively lead the open source Mifos X project
     

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6 hours ago, King34Maine said:

I know of MTN and Orange deal but that Mifos is new to me and wow does that sound promising. Tanzania seriously building their TIPs on Mojaloop? Home sweet home! 

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1 hour ago, GrayFox said:

I know of MTN and Orange deal but that Mifos is new to me and wow does that sound promising. Tanzania seriously building their TIPs on Mojaloop? Home sweet home! 

Yeah, I happened to stumbled upon that tid-bit a month ago while doing some research on DFS Labs. I didn't include the WOCCU link mentioned as part of the Mifos X Project since we were talking about ILP adoption in Africa, but I think that their adoption will be a huge development for Mojaloop across Asia.

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I'm a little more skeptical of the pan-African initiatives these days given the different political environments, so I tend to focus on national development.  The Gates Foundation is influential, but won't primarily determine banking in Africa; my hunch is Egypt (and S.Africa) could drive African adoption, not the other way around. I'm still not sure what to think of Mowalli but  Mojaloop is primarily for domestic payments, not international, and IIRC they have stated that it will not use XRP, but  Egypt has cross-border needs and close ties to the Middle Eastern banks and governments already using Ripple more than those of central Africa. When banks build out their mobile networks, the ILP will really come into play.

Edited by WrathofKahneman

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1 hour ago, King34Maine said:

I agree with your assessment in the immediate and mid-term. However, as we all know, we are at the beginning stages in the development of a truly global borderless society. Cross-border transactions will become inherently integrated into in domestic payment infrastructures of various countries like the Tanzanian Central Bank's TIPS platform being built on top of Mojaloop. These various countries are not going to turn down the opportunity to save more money, if they can, by utilizing a digital asset. Also, as Stefan Thomas mentions @ 46:58, XRP was "designed to be used as the settlement asset on ILP" with "payment channels built in a certain way that is incredibly efficient" despite the presence of other cryptocurrencies (i.e. Bitcoin, Ether, Lumens, etc.). To me, ILP is the rarely spoken about true innovation that has spawn out of this blockchain/DLT revolution.

I mentioned a while back how I used to think that it was a poor strategic business move for Ripple to have placed their smart contracts program (Codius) on the back burner in 2015, yielding the space almost entirely to Ethereum and others to build upon. However, in retrospect, it was probably one of the best business decisions they could have made. Stefan Thomas said in Quora Q&A session, “I worked on Ripple’s smart contract system Codius back in 2013–2015. Back then, our conclusion was that a viable smart contracts ecosystem requires a standard for payments first. Contracts need to be reviewed to be trusted and that’s expensive if you need a new contract for each type of asset because every ledger has a different protocol/API. Thus, Interledger was born.” It goes to show you just how much time and energy went into the Ripple's developmental process in knowing what needed to be done 1st, 2nd, and 3rd to achieve their goal of becoming this facilitator of the Internet-of-Value (IoV). They truly thought about the execution of their business model/plan from Genesis to Revelations!!! Now that they have all of the integral pieces of the puzzle in place: the leadership, the engineering team, RippleNet solutions (xCurrent, xVia, xRapid), Interledger Protocol (ILP); it is exciting to see them finally execute their vertical growth strategy. Stefan Thomas went on to say in that same Q/A (the 4th question down) "Finally, on the Interledger front we are moving on from working on the protocol and are starting to look at early use cases. We’ll be challenging a lot of use cases for distributed protocols that are currently using custom tokens with much simpler solutions that use ILP/XRP instead. (Think custom communications protocols that are for one purpose only being disrupted by the Internet.)"  

To me, Mojaloop is just another piece of the foundation Ripple has been strategically laying for the past 8 years and just an international extension of their more domestic-focused Infrastructure Innovation Initiative led by Dilip Rao. Oh, the plans within 

I couldn't have said it better. Incredible summary.

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3 hours ago, Truckdriver said:

I went to Egypt once , not the corridor I expected , good luck to Ripple it will be huge.

sexy_1.gif.aa5dff33d22f9c9a7d1ff47af22e186a.gif

oh that brings back memories. Those 2 older gentleman are part of a long running comedy show. They are like the Monty Python of the middle east :lol:

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1 minute ago, Truckdriver said:

Lol , Great , any links for them. 

They are called Tash Ma Tash. This is an old clip of their show. Sorry no captions for this one but to loosely translate, the one dressed in white is talking about how his son is a coward because he came running like a mad man screaming that he saw a snake in the desert. 

Gonna stop hijacking the thread :lol:

 

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Just to be on topic and putting my holiday to good use. 

If Africa were to succeed in this Free trade agreement then they need to crack retail payments. The IFC estimate retail payments in Africa to be a $1.5 trillion market and growing rapidly. Currently cash is king  for small everyday payments which forms the majority of spend due to the lack of financial infrastructure and going the route of visa/mastercard is way too expensive for your everyday merchant in Africa. 

I truly believe Visa and their ilks will fail in Africa if they try to adopt the same strategy they use in Europe and other developed nations, hence why they are busy scrambling buying out innovative fintech companies. AMEX was the first forward thinker and saw the writing on the wall. Smartphone penetration in Africa is increasing must faster than setting up payment infrastructure built on old age thinking. It is cost effective to set up payments on mobile network operators than a banking infrastructure because it guarantees a much bigger penetration and in turn speeds up financial inclusion. This is one of the key reasons why Africa is a banking desert wasteland.

Recently, there is a big push for using QR code attached to mobile wallets and other innovative solutions. Africa is using China as an example and completely bypassing cards opting instead to move into the world of mobile wallets and QR codes. Crossborder SME payments are also on the rise.

If Interledger protocol can crack open this market, we are talking an untapped continent worth trillions of dollars and a young working population that is eager to adopt agile solutions. Population increase is estimated to be upwards of 50% by 2050 and by then hopefully Interledger Protocol will be ubiquitous just like the Internet is for children these days. 

 

I still stand by my statement that Interledger Protocol still remains Ripple's greatest checkmate move. 

 

I know these are old but they are worth reading as Ripple's solutions fit perfectly into this old age problem that Africa is trying to crack: 

1- QR CODE PAYMENTS MAKING STRIDES IN AFRICA - https://atelier.bnpparibas/en/fintech/article/qr-code-payments-making-strides-africa

2- East African Interoperability: Dispatches from the Home of M-Pesa - https://www.cgap.org/blog/east-african-interoperability-dispatches-home-m-pesa

3- A $1.5 Trillion Tip on Cracking Merchant Payments - https://www.cgap.org/blog/15-trillion-tip-cracking-merchant-payments

4- East Africa - the heart of mobile money. What is next? - https://www.thepaypers.com/expert-opinion/east-africa-the-heart-of-mobile-money-what-is-next-/779537

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On 7/1/2019 at 10:25 PM, WrathofKahneman said:

In 2018, Egypt received the 5th largest amount of remittances.  The first list:

  1. India
  2. China
  3. Mexico
  4. Philippines
  5. Egypt 

Egyptian pound (EGP) is definitely an inflationary and unstable currency that you don't want to hold long-time. AFAIK xRapid would be ideal solution to eliminate pre-funding of EGP but unfortunately there is not any XRP/EGP pairing in any exchanges yet.

https://tradingeconomics.com/egypt/currency

1.png

 

https://tradingeconomics.com/egypt/inflation-cpi

2.png

Edited by hallwaymonitor

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