Jed McCaleb, IBM’s Lund Show Glimpse of Stellar’s Crypto Payment Process Network Effects at Money 2020
Stellar Lumens (XLM) is one of the fastest growing cryptocurrencies at the moment with market cap stats in mind. The cryptocurrency, alongside its host network called Stellar.org, has been on the financial news for the past few months. Part of the reason for this global exposure is the spike in sales the organization experienced after merging with the IBM Blockchain World-Wire. As part of the merger, the IBM Blockchain is expected to use the cryptocurrency as part of its payment solution in well over 50 countries.
The now guaranteed larger market cap thanks to the IBM Blockchain and Stellar Network makes this cryptocurrency the ideal cross-border form of transaction. More so, the transactions are near instant. However, the Stellar Protocol, which is responsible for making these transactions, requires a secure network to hasten the payment process. The CTO of Stellar.org Jed McCaleb spoke regarding cryptocurrency and its ability to influence financial inclusion in the recently concluded Money 20/20 Conference.
According to the CTO, cryptocurrencies are making steady progress in its inclusion in the payment industry. The addition is perfectly timed seeing most banks are supporting this form of payment partly due to its efficiency. McCaleb claims a lot of people underestimated the effect cryptocurrency would have on the payment system. Having worked in the crypto industry for over eight years, the CTO has the perfect understanding of both the growth and inner workings of the Stellar Lumens cryptocurrency.
How do Network Effects Affect Payments?
McCaleb claims payments are heavily dependent on network effects. In short, all transactions made using any form of cryptocurrency can be speeded up with stronger signals. The signals might be strong in a particular area, but cryptocurrency is not limited to geographical divides. As such, a united consortium has a better chance of making this form of payment work if it is to reach its full potential.
By merging its Blockchain with the Stellar Lumens cryptocurrency, IBM has just opened the regulated financial institutions' gates to digital assets. Banks all over the world and other similar organizations no longer need intermediaries when being used as ways to send money internationally. Stellar Lumens will now be available in all the countries that support the IBM Blockchain making it accessible to more people around the globe.
How is the Progress?
The IBM Blockchain effects on Stellar Lumens are evident as the stable coin has experienced an exceptional surge over the past few months. However, there has not been much progress regarding the adoption of the cryptocurrency in some of the countries that support the IBM Blockchain. While the interest in the cryptocurrency is concrete, the snowballing effect expected is yet to pick up the pace.
McCaleb guarantees that things will heat up in the next six months as more people adopt this form of payment. Support from the Stellar Protocol and the IBM Blockchain World Wire makes financial inclusion easier for this cryptocurrency.
Currently, over 2 billion adults around the world do not have bank accounts or even any form of financial service. However, a billion out of the two have access to smartphones, which are vital when storing digital value and enabling transactions. Such a network is all that is required to guarantee smooth and fast crypto payments seeing the Blockchain is already in place.