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- Denelle Dixon confirmed that the SDF is working with Bermuda and Ukraine on the technical development of a CBDC on Stellar.
- Regarding the SEC lawsuit against Ripple, Dixon stressed that XLM is a utility token and the SDF promotes diversity on the Stellar network.
In an interview with Coindesk TV yesterday, Denelle Dixon, CEO of the Stellar Development Foundation (SDF), spoke about projects for digital currencies of the central bank in the Stellar network in Bermuda and in Ukraine. While the Bermuda dollar has been in development since 2018, the SDF partnered with the Ukrainian government last May to control the issuance of the e-hryvnia based on the Stellar Protocol.
When asked by the moderator about the current status of both projects and the insights gained, Dixon said:
The really wonderful thing about these two projects is that with the Stellar Development Foundation as an open source project, a lot of people can build on the network without talking to us. […] Both projects have done a lot for themselves, and we come in and support them with any technology issue they have, or growth and development of ecosystems, and they are just really nice partnerships.
Following the CBDC (Central Bank Digital Currency) project in Ukraine, the host found that the SDF had signed a Memorandum of Understanding (MoU), although to the best of her knowledge “nothing is yet set in stone”. Dixon confirmed this, saying:
We are actually helping Ukraine explore it [the CBDC], not just with Stellar, but with many networks as this might work for them from the additional currency they want to offer. They’ve done tons of their own research, but we’re helping them move forward to have it where they want it. We hope you do. We hope it is on Stellar, but even if it were on a different blockchain we would support this because […] it brings blockchain more into the mainstream.
Dixon also commented on the panic surrounding the alleged ban on cryptocurrencies in Nigeria. As the SDF CEO stated, there was a “really strong corridor between Nigeria and Europe” on Stellar, the growth of which was slowed by regulatory concerns. Ultimately, however, she expects partnerships between the government and the private sector to prevent a ban.
Dixon revealed Mexico, Argentina and Brazil as other emerging markets where Stellar “sees a lot of activity. And of course there are so many regions in Africa that are only just arriving in terms of these digital assets. “
When asked about Stellar’s alleged “arch rival” and the recent Ripple partnership with Tranglo for Southeast Asia, Dixon avoided calling Stellar founder Jed McCaleb’s earlier project a competitor:
The different networks offer different values. I think we really focus on payments and cross-border payments, and that’s kind of a sweet spot in terms of Stellar. And Ripple is very focused on FX and is now moving that into the cross-border space. In my opinion […] This competition creates innovation. So I look at all of these networks out there and they all create their own individuality […].
Regarding whether both XLM and XRP could be classified as security by the US Securities and Exchange Commission, Dixon noted that the Stellar network token has a utility. In addition, she stressed that the SDF promotes diversity in the network by allowing issuers to create any type of stable coin that is backed by, for example, a fiat currency, gold or even silver.
From our point of view, XLM is a network bridge currency and utility [token].
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