InFTF MTU Partners with Cooperative Bank of Oromia to Enable Fast, Low-Cost Remittances via Xahau Blockchain Network

Excerpt

COOP Bank of Oromia, one of Ethiopia’s largest banks, has launched a new remittance service powered by the Xahau blockchain network. This service allows the Ethiopian diaspora to send money home quickly, securely, and affordably. InFTF MTÜ, a key supporter of financial inclusion, contributed its expertise in blockchain technology to facilitate this modernised solution, helping COOP Bank bring affordable cross-border transactions to communities across the country.

Main release

InFTF MTU, a non-profit based in Estonia, has announced a strategic partnership with Cooperative Bank of Oromia in Ethiopia to facilitate fast, low-cost remittances for the Ethiopian diaspora. The partnership leverages the Xahau blockchain network, a decentralised, scalable platform that features smart contract functionality. This advanced technology allows for secure, transparent, and compliant cross-border transactions, empowering both senders and recipients while significantly reducing costs.

Ethiopia has a large and vibrant diaspora community that regularly sends remittances home. However, traditional remittance channels are often costly and slow, disproportionately affecting those who rely on them the most. This partnership between InFTF MTU and Cooperative Bank of Oromia seeks to address these challenges, delivering modern financial services to Ethiopian communities, especially those in rural areas.

Deribe Asfaw, President of Cooperative Bank of Oromia, commented on the importance of this partnership: “Our partnership with InFTF brings cutting-edge blockchain technology to modernise financial services in Ethiopia. By offering faster and more affordable remittance solutions, we can help empower communities across the country and make a lasting impact on people’s lives.”

The Xahau network’s smart contracts add a vital layer of automation and security to the financial services offered, ensuring that transactions are both compliant with regulations and protected from fraud. Bharath Chari, Management Board Member at InFTF, added: “Smart contracts are essential to maintaining security and ensuring compliance, both of which are key to building trust in digital financial ecosystems. Our technology helps create a robust, transparent environment that is accessible to everyone, particularly in regions that have been underserved by traditional financial systems.”

Financial inclusion is at the heart of the initiative. Ethiopia’s rural population, in particular, has historically been underserved by formal banking institutions. By lowering the cost of remittances and increasing their speed, this partnership has the potential to greatly enhance financial inclusion. Dr.-Ing. Getahun Mekuria, Senior Advisor for Africa and the Middle East at InFTF, stated: “Energy-efficient technologies like blockchain play a critical role in sustainable development, particularly in Africa and the Middle East. We are committed to fostering growth that is not only inclusive but also environmentally responsible.”

For Cooperative Bank of Oromia, innovation in digital banking has become a key strategic focus. Aman Semir, VP of Technologies and Digital Banking at the bank, emphasised: “Blockchain technology enables us to offer secure and efficient digital banking services. This partnership provides an opportunity to improve the financial services we deliver, making them more cost-effective and accessible to a broader range of customers.”

The remittance service is expected to offer significant benefits to the Ethiopian diaspora, who can now send money home more quickly and affordably, while recipients in Ethiopia—especially in rural areas—can receive their funds securely and without the high fees traditionally associated with international money transfers.

Key Features of the Xahau Network

  • Smart contract functionality for secure and compliant financial services
  • Rapid transaction settlements in seconds
  • Low-cost transactions with multi-currency support
  • Decentralised and robust with no single point of failure
  • Open network allows any entity to participate
  • Energy-efficient design for sustainable operation

Media Contact

Marko Mägi (English, Estonian) Head of Communications Email: [email protected]

José Antonio Lázaro Espila (English, Spanish) International Outreach Manager Email: [email protected]

For more information and to access high-resolution logos visit inftf.org.