Stellar has reached some important milestones in the past 5 years, but they have high goals for the next 5 years. Today the Stellar Development Foundation has shared its goal of being the next global payment standard. However, how to get there depends on whether governments choose to use Stellar's unauthorized network for Central Bank Digital Currencies (CBDCs). Since the speech, Stellar’s price has increased by 11%.
Speaking while the consensus was disbanded, Stellar CEO Denelle Dixon begins his speech with a move that suits the current financial crisis and says:
"The current financial infrastructure has been working with models that have not changed for decades. In the context of this pandemic, look at how many people have waited for weeks to receive money support under the measures taken."
This suggests that policy makers force governments and central banks to recognize the need for innovation, as well as fair access to the financial system. In response, Stellar examines how CBDCs are implemented. "CBDCs are the kind of digital money designed by Stellar that connects today's real-world financial infrastructure to the digital blockchain world," says Dixon.
When asked what this new normal could bring for Stellar, Dixon said the blockchain would be a great opportunity as it became the referee of innovation. The speeches inevitably turned to Facebook Libra, a project that had to change its direction from the initial understanding due to regulatory pressure. While Stellar is trying to achieve a similar goal, would legal regulation be an obstacle? "The network layer is very similar to the Internet, it shouldn't be edited," Dixon explains, and "Stellar itself is the layer everyone can build on, so I don't expect any regulation about it."
No digital dollars in Stellar yet
As to whether a government would choose to generate a digital dollar in private sector initiatives such as Stellar or Libra, Jed McCaleb, founder of Stellar, says:
“We talked to several governments around the world about CBDCs. I still think it's too early for that, and it's especially too early for them to post these things in a public chain. they want to check. So, I still think the whole CBDC story is too far away. ”
The digital dollar project is back
The digital dollar was the subject of more than one bill at the Congress. Still, he hopes a government, especially Stellar, will choose an unauthorized chain. McCaleb argues that a special chain is useless because it technically exists in the form of a digitized dollar held in central bank reserves.
“Unless there is a more open system where people are flexible to send money around, it doesn't really benefit you.”
Technical developments of Stellar
McCaleb has gone through several technical updates to the Stellar ecosystem. Limiting statistics, McCaleb stressed that the network has carried out more than a billion transactions, published 7,000 assets and entered 121 verifiers since it started in 2015. This means that the network is now in a position to operate without the support of the Stellar foundation.
"This is clearly a big step for decentralization," says McCaleb.
Stellar’s next milestone is Protocol 13 and Horizon 1.0 upgrades, which are expected to be voted by verifiers in early June. Among optimizations that aim to increase both efficiency and scalability, McCaleb highlighted a signer endpoint that aimed at facilitating multiple imaging operators by looking for multiple accounts linked to a common key.