- Stellar Lumen has to focus on increasing the interoperability with products from the current financial infrastructure like business banks and central banks.
- The Stellar protocol has to improve the process of integrating all features into existing business structures.
Denelle Dixon, CEO of the Stellar Development Foundation (SDF), shared her experience as a participant in the event “Cross-Border Payments – A New Beginning“. Sponsored by the International Monetary Fund (IMF), the event took place on October 19th. Among its participants were the President of the Federal Reserve of the United States, Jerome Powell, and the Senior Vice President of Mastercard, Rory MacFarquhar.
Dixon was part of the panel oriented to give participation to representatives of the private sector. Moderated by the Assistant Director of the IMF’s Monetary and Capital Markets Department, Dong He. Dixon highlighted the importance of the private sector as an engine of innovation for the future of cross-border payments. However, she said that the products and services that businesses develop require freedom and innovation:
The private sector has long been a leader when it comes to offering new solutions and technological developments. However, it’s important that private organizations build these products and services not only with the freedom to innovate, but with the intent on making them truly sustainable and practical for the end-users.
The CEO of the Stellar Development Foundation summarized the needs of the private sector in relation to cross-border payments and their development in: innovation, competitiveness and interoperability. In that sense, the results that companies can offer should be focused on the development of one use case and not on the technology.
Stellar Lumens roadmap for cross-border payments progress
Based on the above, the CEO of the Stellar Development Foundation outlined the 3 most important points that her company and the private sector must follow to drive the development of cross-border payments. Firstly, the technology layer, like Stellar or Ripple, must “be user-friendly and improve on the existing rails”.
In addition, Dixon believes that the products developed should solve real user problems in a simple way. In addition, products should be “interoperability focused” to work with the current financial infrastructure “rather than supplanting it”. The CEO of the Stellar Development Foundation added:
By consistently approaching solutions from a use case perspective rather than the technology itself and applying standards of interoperability, we can reduce friction for users and developers, create efficiencies resulting in decreased costs for developers and users, and enhance competition and innovation.
Finally, the SDF CEO believes that regulation remains a central issue for the private sector and companies developing technology to drive progress in cross-border payments. Therefore, she believes it is necessary to build “safeguards” to protect users, companies, and institutions. Interoperability could be key to achieving this. Dixon believes that institutions will adopt Stellar Lumens’ technology when they see how it improves the “existing financial structure. The CEO of the Stellar Development Foundation added:
I reiterated that permission-less networks are the infrastructure layer that allows entities to build and innovate upon ideas and products that will solve the lack of financial inclusion all over the world. These solutions will allow users to send payments via phone, without a bank account, and within 3-5 seconds – and that’s just the tip of the iceberg for the potential created by open-source networks.