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Articlewww.pymnts.comPYMNTS4y ago

Stellar: Blockchain Networks Will Transform Cross-Border Payments, Crush Banking's Hopscotch

Justin Rice from Stellar Development Foundation discusses how open-source blockchain networks can transform cross-border payments by eliminating intermediaries, reducing costs, and improving financial inclusion in emerging markets.

PaymentsRemittancesFinancial Inclusion
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Justin Rice, head of ecosystem at Stellar Development Foundation, explains how open-source blockchain networks can revolutionize cross-border payments by disintermediating the correspondent banking system. Stellar's common ledger allows anchors, money service businesses, and FinTech companies to issue fiat-backed tokens, enabling direct currency interactions across borders. Rice highlights that blockchain transactions on Stellar cost fractions of a cent and settle within seconds, compared to expensive and inefficient traditional rails. The technology particularly benefits remittances and B2B payments in emerging economies like Africa. SDF plans to release a new protocol in November enabling automated market makers for liquidity pooling, which will improve market efficiency and cross-border activity at scale.