The IBM-Stellar connection
Jessel Lund (IBM) recently announced that the company has been working with central banks on digital currency projects for some time and that the launch of a CBDC (Central Bank Digital Currency) is imminent.
The Head of Blockchain Solutions and Financial Services, Jessel Lund of IBM, has announced in a Reddit that the development of a digital currency of a central bank on the blockchain of Stellar has progressed very far and the leek is imminent.
He expects “definitely” a Central Bank Digital Currency (CBDC) to be published “soon”. When asked how far development had progressed either on the Stellar Blockchain or on another, he answered “very very close”.
When asked if the Stellar Decentralized Exchange (SDEX) will replace traditional stock, bond and securities trading, Lund replies yes!
Yes on exchanges– Stellar has a built-in distributed exchange. You should check it out.
Another very interesting question in our view was whether central banks will continue to issue Fiat currencies as analog-digital tokens (CBDCs) based on the Stellar network and whether banks will continue to be required in this system. Lund answered both questions in the affirmative as well:
Yes on CBDCs and tokenized fiat (definitely… soon). I think banks will start to refocus on what they were invented for– safeguarding deposits, paying a decent low risk rate of return, and making loans from those deposits thereby creating credit to stimulate economic growth. Charging fees simply to intermediate payments is lame Private transactions will be enabled by Lightning adoption in Stellar (and other initiatives like it as the space evolves).
When asked whether Stellar is being used by IBM or whether it is planned to issue its own coin, Lund replies that Stellar is part of IBM’s blockchain strategy. IBM currently uses Lumens as a bridge asset to support real-time transactions as part of a cross-border payment solution. According to Lund, IBM has no plans to issue its own token. IBM worked “offensively” with commercial banks, central banks, and other financial institutions to issue other digital assets (e-money, digital currency, digital gold, etc.) on Stellar.
Stellar is one of the promising projects in the blockchain industry and It’s even my pick in my Top 10 coins that I am holding.
The IBM connection is strong enough for this project to boom in the near future, but I expect a lot of more partnerships coming soon which will increase the importance of this project.
What do you think about stellar as a crypto? Do let us know in the comment box below.
Also read: https://cryptotrends.in/ripple-xrp-vs-banks/