Stellar Development Foundation submitted comments to the Federal Reserve on how CBDCs could improve financial inclusion, reduce payment costs, and enable cross-border remittances. The SDF highlighted Stellar's role in CBDC infrastructure, citing examples like Brazil's central bank partnership and cost comparisons showing Stellar's efficiency for remittances.
The Stellar Development Foundation responded to the Federal Reserve's CBDC discussion paper, outlining how central bank digital currencies could expand financial access and reduce costs. Key proposals include using blockchain infrastructure like Stellar to lower merchant acceptance fees, enable real-time payments, transition informal economies to formal systems, and dramatically reduce cross-border remittance costs from 6% to fractions of a cent. The SDF emphasized interoperability and a two-tier distribution model where the Federal Reserve maintains control while financial entities compete to serve consumers. The submission references Stellar's partnership with Mercado Bitcoin for Brazil's CBDC exploration and demonstrates cost advantages, such as 1.6% transfer costs to Colombia versus 5.3% through traditional systems.
