The Stellar Network has lined up several partnerships with central banks and institutions worldwide to develop CBDCs. The Network’s native token XLM competes with payments giant Ripple in the CBDC ecosystem.
The race to develop central bank digital currencies has intensified, and Stellar Network leads the way with a series of partnerships. Stellar’s blockchain network focuses on asset issuance and proposes features like adjustable settings for asset access, interoperability and features to reclaim balances from user accounts.
Further, Stellar’s Consensus Protocol (SCP) involves KYC, making it an ideal blockchain network for stablecoin issuance. Stellar’s partnership with American payments giant MoneyGram has boosted XLM’s utility.
Stellar Network invested in consumer credit product company Tala, one of the largest to date since launching the Enterprise Fund in the fiscal year 2020. The Stellar Network is focused on expanding its reach to four countries and millions of users.
Stablecoins are conventional pegged to a government-issued currency and backed by assets, audited for compliance. However, Stablecorp and VersaBank’s collaboration with the Stellar blockchain innovates on the traditional use case. VersaBank directly issues VCAD and treats it the same way as bank deposit receipts.
The Canadian stablecoin will be issued and minted on Stellar, offering fast transaction speed, near-zero transaction fees and inter-chain operability.
With the rising utility of XLM, Stellar’s native token is likely to hit $3 based on cryptocurrency analyst @DLinkbull’s prediction.
Pseudonymous cryptocurrency analyst @Pentosh1 considers that the volume of on-chain transactions and activity on the Stellar blockchain is rising. However, the analyst is hesitant to increase exposure to the Stellar blockchain.
FXStreet analysts have evaluated XLM price and predicted 85% gains in the altcoin’s price.