Stellar Lumens Wants To Be The Basis For The Digital Dollar

The CEO standing behind the Stellar Lumens (XLM) altcoin and the head of the Stellar Development Foundation, Denelle Dixon, recently spoke in the cryptocurrency news. She criticized the lack of innovation in the traditional financial system and suggested that Stellar Lumens wants to be the blockchain that would form a base for the digital dollar.

Dixon spoke at the Consensus Distributed event about the current financial crisis caused by the COVID-19 pandemic. She said that there is little innovation in the financial system and that the entire system is vulnerable due to the lack of innovation.

“The existing financial infrastructure is outdated, operating on models that have been unchanged for decades. In the context of this pandemic, just look at how many people have waited weeks for paper stimulus checks,” Dixon noted.

As reported by DC Forecasts before, in several countries such as the United States and Canada, the governments decided to send a direct subsidy to its citizens. However, this measure was delayed while the most appropriate ways of implementing it were discussed.

Anyways, Stellar Lumens wants to be the blockchain base for the digital dollar. In this regard, Dixon proposed the network as the most appropriate platform for issuing a digital dollar and any digital coin that is issued by a central bank.

“CBDCs was exactly the type of digital money Stellar was designed for, connecting today’s real-world financial infrastructure with the digital blockchain world,” he said.

As Dixon noted, the outcome of this crisis and the potential changes that the COVID-19 pandemic could bring to the world might also bring an opportunity for the blockchain news to show the advances from the sector. However, there is still a possibility of stronger regulatory pressure on projects like Stellar Lumens (XLM) and Facebook’s Libra token which we are already seeing. In this manner, Dixon said:

The network layer is very much like the internet, it shouldn’t be regulated. Stellar itself is the layer that everyone can build on top of, so I don’t see regulation with respect to that.

On the other hand, the co-founder of Stellar Jed McCaleb said that even though the XLM network was designed to be the basis for a CBDC, this possibility is still a long way off.