Stellar Development Foundation with Denelle Dixon | E198
Stellar, lumens, and the use case for stable coins.
On today’s episode, Jason is going to talk to Denelle Dixon, CEO and executive director of the Stellar Development Foundation. Stellar is one of those coins that has been around for a while and has some very interesting use cases.
Episode Highlights:
1.08: Dixon says that the stellar development Foundation is a nonprofit, non stock entity whose sole mission and soul focuses on developing the ecosystem around the stellar network and also shepherding the codebase for the stellar network.
2.25: The stellar network originally intended to focus on cross-border payments and make it really simple for asset issuance so that you could actually make those cross-border payments simple and efficient and to work.
4.33: There are lots of stable coins that are issued on stellar, and these coins are like USDC, and you can actually send the stable coin so that you don’t actually have to worry about any volatility in the cryptocurrency market itself, says Dixon.
6.47 Jason says that there is also a notion that blockchain actually creates security and it’s an immutable public record. You can always make sure that these transactions are taking place.
7.50: At some point, the crypto transaction needs to leave the blockchain to enter the existing payment rails, says Jason.
8.25: The notion of having stable coins actually creates an opportunity for the stability so that you don’t actually have to worry that when you send a transaction, affirms Dixon.
9.03: Dixon says that we think about the financial system from where we sit, wherever that might be but it’s really hard to think about in certain countries.
11.34: Leaf global company has created the digital wallet that folks can use when they are crossing borders. They can put their assets in the digital wallet, making crossover borders safely and securely and still have the same value that they had when they left the first country.
12.10: Jason says if you are entering countries in sketchy ways because you are a refugee, that sort of thing is not an option.
14.31: Blockchain is the fastest way to transfer money between countries with the least amount of fees and your vendors on the other side don’t necessarily need to understand that blockchain is how you got it to them because it just goes into their bank account.
16.22: Dixon says it is not surprising that Realty Bit company exists, but the simplicity in the ability, the ease of use to be able to purchase the tokens that represent the fractionalized interest in the properties is pretty remarkable.
17.27: Dstock is bringing the thing that we talk about all the time: financial inclusion for everyone through the stock. You can actually purchase blue chip stocks and you can even purchase fractionalized interests in blue chip stocks anywhere in the world.
18.30: The innovation can move faster than the incumbents in so many ways when you take a positive attitude.
19.37: Many folks in Argentina don’t want to put amount it in the bank accounts so they can actually hold it in this digital form in USDC, and they can keep stable as the market in the local currency goes up down.
20.00: Blockchain is really focusing on the breath of challenges and the solutions based on technology, but also really getting down to the needs of the local participants in the network.
20.42: Jason says there are plenty of countries where it’s going to cost you a significant percentage to make it withdraw from a bank, because that’s their primary means of collecting tax revenue.
22.00 Jason: Crypto world is an area where both network dynamics and platform effects come into effect.
23.19: If you have the global network with the partners that create the on and off-ramps and then from there everyone can just build on it, and it can just grow.
27.12: Jason says educating the regulators is sometimes necessary simply because there’s just too much for them to look at in most cases.
27.53: When you are talking to regulators and policy makers, the experience that they have with us in terms of the engagement, it’s going to change the direction of what happens with respect to it, says Dixon.
28.37: China is developing its centralized cryptocurrency for absolute control of their economy. They do have the great firewall that gives them the more potential than anyone else to actually shut something down.
32.59: When you have lots of people fighting in your corner to make that successful because you have so many entities in this ecosystem that care about that is just like a truly awesome endeavour, says Dixon.
3 Key Points:
The global remittance system is enormous. The amount of money crossing borders, whether it be people sending money to support people back home, or even for transactional purposes, is substantial.
Back in the old days of the Internet, you had a lot of Silicon Valley building for the world, and that’s actually not the way they should be. It always should be solving local problems with local solutions.
The beauty of blockchain is that it allows the local developers to look at the problems they see around them and fix them in ways that make sense for their communities and do so in a global network, says Dixon.
Tweetable Quotes:
“There are so many fractures in getting money from one place to another as the system is not seamless and each border has its own system.” - Dixon
“We have come a long way, and we are now using the likes of a cryptocurrency that can transact the pennies.”- Jason
“Blockchain creates the opportunity to truly have a global financial system that doesn’t exist today.” – Dixon
“Not everybody does understand all the inner workings of how HTTPS works, and yet we still use the Internet every single day.” - Dixon
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