There have been many news reports about the US government’s preparation to launch the digital dollar, but so far not enough details have emerged about how to do this and what technology to use.

Stellar is one of the crypto projects present in its currency in the list of the top 20 currencies in terms of total market capitalization, the project currency XLM is currently ranked 11th and recorded a 5% increase in the last 24 hours, perhaps due to the recent news that we will review in this article.

to speak Recently, Mr. Denal Dixon, CEO of Stellar Corporation, referred to the possibility of governments and central banks adopting the Stellar network to build their digital currencies, and hinted at the possibility of applying the digital dollar to the Stellar network during the current crisis.

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Dixon said:

The current financial infrastructure is outdated, running on models that haven’t changed in decades, and in the context of this pandemic, just look at the number of people who have waited weeks for paper stimulus checks.

He suggested that policy makers, governments and central banks alike recognize the need for innovation as well as equitable access to the financial system.

Dixon added in his statement:

CBDCs are exactly the type of digital money that is designed for stellar, connecting today’s real-world financial infrastructure to the digital blockchain.

When asked what this new normal might bring for stellar, Dixon responded by saying that it would potentially create a great opportunity for blockchain to become the rule of innovation.

During the dialogue with “Dixon”, the Libra currency that Facebook is working on was discussed, in which the company was forced to change its direction several times due to regulatory pressure, while Stellar is also seeking a similar goal.

Dixon responded with the answer:

The network layer is very similar to the Internet, and it does not have to be regulated.

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Stellar itself is the class that everyone can build on, so I don’t see any regulation regarding that.

There is no digital dollar on Stellar, yet:

There is still no confirmation that the digital dollar will be built on stellar. Jade McCaleb, the founder of Stellar, told the following:

We’ve talked to a few governments around the world about CBDCs.

I still think it’s too early to do this and especially too early for them to issue this stuff on a public chain, most governments when they get into the nuts and bolts they want to control.

So, I still think that the whole CBDC story is a long way off.

However, McCaleb hopes the government will choose Stellar.

McCaleb argues that there is no benefit from a private network because it technically already exists in the form of digital dollars held in central bank reserves.

He added:

It doesn’t get you anything unless you make this system more open where it’s flexible for people to send money.

Technical Developments in Stellar:

The Stellar project has developed significantly since its inception in 2015, where more than one billion operations have been conducted and the project was issued
7000 digital codes and 121 verification tools design.

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This means that the network is now in a position to operate without the support of the Stellar Foundation.

Commenting on the provided statistics, McCaleb said:

This is clearly a big step towards decentralization.

The next major stage in Stellar is protocol upgrades, which are expected to be voted on by validators in early June.

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