Will Stellar Lumens Become the Global Baseline for CBDCs

Stellar Lumens (XLM) is poised to play a pivotal role in the development of central bank digital currencies (CBDCs) in the near future. Ukraine, amidst an ongoing conflict, is steadily advancing in this direction, as announced by the CEO of Stellar Lumens, .

According to Dixon, CBDCs are among the projects Stellar is interested in collaborating on with Ukraine. She noted that due to the ongoing conflict, the plan is not progressing as consistently as before. Nevertheless, Dixon expressed optimism that they would soon be able to assess when the project will be completed or provide specific timelines for its conclusion.

Ukraine's Progress with

Dixon also highlighted that the President of Ukraine is eager to transition to a cashless society as quickly as possible. Furthermore, she mentioned that the country is utilizing other crypto assets and clarified that Stellar has no interest in having its XLM token adopted by the government. However, the primary focus is on Ukraine's CBDC, aimed at strengthening the hryvnia, the national fiat currency.

The government aims to avoid a situation where another crypto token undermines the convenience of using the hryvnia. Additionally, as the country continues to implement its national digital currency initiative through the Stellar Lumens ecosystem, the platform may serve as a base for hosting other CBDC projects. The Stellar Lumens network is designed with CBDC development in mind, although this aspect has taken a back seat due to intense competition.

Central Banks Ready to Issue CBDCs

Despite the recent downturn affecting the digital asset ecosystem, most countries are still working on creating and launching their CBDCs backed by fiat currencies. A recent document from the Official Monetary and Financial Institutions Forum (OMFIF) revealed that governments are not deterred by the current disruptions in the digital asset market and, in some cases, are even pushing for innovation.

As a result, two-thirds of surveyed central banks stated that they are ready to launch their CBDCs within the next ten years. Furthermore, a survey of 18 central banks showed that 35% of them are open to issuing CBDCs, despite the bearish trend in the cryptocurrency market.

Countries like Nigeria, the Bahamas, Jamaica, and others have already launched their CBDCs, with China being one of the countries in the final testing phase before the launch of its national digital currency.

Written by

Leave a Reply

Your email address will not be published. Required fields are marked *

Stellar Lumens Introduces Innovative Projects Set to Change the World

Stellar Collaborates with UN to Provide Cash Aid to Ukrainian Refugees via USDC