Denelle Dixon, CEO of Stellar Development Foundation spoke at the IMF 2020 virtual conference where she was asked how did she see the cross border payments evolve in next 3-5 years and what factors would contribute to the success.
Denelle said success of cross border payments will depend on three things.
- How good we are to develop easy use cases for developers to develop on open source network like Stellar?
- Solving real user problems vs focusing on the technology
- Interoperability between currencies
She added that the focus should be on open decentralized networks like Stellar. Stellar wants to be the internet of payments and they are building easier to use onramps to issue value and tokens on Stellar.
There are already myriad tokens like Gold, Silver, USD and other stablecoins deployed on Stellar network that are very useful and similar to what CBDC can be. Infact, the banks can issue a CBDC on Stellar network easily.
Denelle said Stellar and permissionless networks shall not be associated with Facebook Libra. Permissionless networks are layers that allow entities to build on top of them to innovate and create products that can help people transact value across each other without need of bank accounts.
LIVE: A conversation on Cross-Border Payments—A Vision for the Future: https://t.co/EFHUv21SWz #CrossBorderPayments #IMFmeetings https://t.co/HhmJWwxVkR
— IMFLive (@IMFLive) October 19, 2020
She added that those financial institutions that touch fiat on the edges are the ones that are regulated by all of different geographies. That is what creates the interoperability.
