Stellar (XLM) is the project of a non-profit organization called the Stellar Development Fund.
Stellar’s mission is to create a financial platform where individuals across the globe and in developing countries can access low fees, secure and easily accessible financial services. The project is primarily designed for cross-border international payments.
So what are the reasons which will help Stellar contribute to being a successful cryptocurrency? These are as follows:
- Stellar has already been confirmed as the first official Sharia-compliant This means XLM could prove to be very popular across the Middle East and would make sense for the countries to use it a bridging currency between transactions with Western nations.
- While the US has been struggling to deal with ICOs and Security Token Offerings (STOs), the SEC in Thailand has been very proactive. Thailand has emerged as a country very crypto and blockchain friendly. There has been a recent announcement that the Thai government is looking to legalize STOs- giving companies a clear and understandable pathway to regulatory compliance. This means that the Thailand SEC’s report of XLM being one the four legally available trading pairs for STOs as very bullish for Stellar holders.
- Stellar has announced a partnership with IBM. IBM has settled on XLM as their cryptocurrency of choice for their blockchain payment solution. IBM has stated they are very close to helping a central bank switch over from fiat currency over to the Stellar network. IBM has reportedly engaged in various banking partnerships in Asia, to further their Stellar partnership.
While these are reasons which state why Stella has excellent chances for success, there are some drawbacks- the most notable being that the project faces powerful completion in Ripple and the XRP token. JP Morgan’s JPM coin could also prove to be a competitor shortly, should the bank decide to adopt their stablecoin for outside organizations.
While the concerns do remain, they should not subtract from the overwhelmingly positive future Stellar, and XLM have in store. The IBM partnership if executed accordingly can prove to be a real game-changer for the industry.
This article was originally publsihed on Blockspectator.