14 July 2020
Since it’s inception, Stellar has undoubtedly, well, been stellar.
Stellar’s plan was to create a crypto trading platform that can exchange crypto into different fiat currencies. Imagine being able to do this all around the world. All this is possible, thanks to Stellar. With its innovative way of seeing the world, Stellar can change the way remittances work. This is due to Lumen, the cryptocurrency they have developed. These two together can help their users to send actual currencies to friends and family around the world.
What is Stellar?
Stellar was first launched in July 2014. The idea was quickly becoming a practical and easy way for people to exchange their crypto into any other fiat currency. The plot twist? The platform is fast, low cost and efficient, in comparison to the expensive and tedious process of exchanging fiat at a bank and having to pay for pesky processing fees. This makes cross-border transactions as easy as possible without using third-party institutions.
The program was started by the Stellar Development Foundation. Its goal is to promote international financial access, literacy, and inclusion. Unlike other digital currency networks, Stellar operates on a nonprofit infrastructure. This has become one of the best platforms for cross-border transactions.
One of the key differences between Stellar and any other crypto is that Lumen (XLM) is not mineable. This means that its only use is in its exchange for other currencies. Lumens will help cut inefficiencies among monetary institutions and customers, making international transactions. Once you put cash on it, you will have instant access to it. Transferring money globally has never been simpler and more efficient.
The development of this platform has been growing non-stop ever since its launch. Now, they are also offering global payment applications, asset exchanges, and micropayment services.
Stellar, Remittances, XLM and the Future
One of the most practical uses of Stellar is for remittances. Because, once again, it is straightforward and incredibly low cost. Stellar works as a bridge between your current currency and the currency you want to get. Stellar opposes to remittance services that take a huge cut of every transaction. In simpler words, you can send money to a friend or family member in Mexico using XLM. They can withdraw their money in pesos, without hassle.
Similarly, if you are going overseas, it is possible to exchange XLM for local currency. There is only one thing you need to do: you need to buy XLM in your local currency or with other cryptos. After that, you can exchange it for any currency that you want, as long as you have enough XLM.
The platform design makes it easy to send fast and cheap cross-border payments. No matter where your money is being sent, it will only take a few seconds and cost a fraction of a penny.
Stellar has a decentralized exchange built into the protocol. This allows users to change between different currencies efficiently. This can be incredibly challenging in today’s financial infrastructure. Instead of waiting days or even weeks to get money sent to a person in another country, Stellar does it in seconds. All this without the hassles of banking institutes and/or third parties.
Easy, at an extremely low cost, and with industry-leading efficiency, Stellar is the future for currency exchange and remittances.