Stellar Lumens is helping the cryptosphere to easily create, trade, and send digital representations of all forms of money. Many believe that XLM is a rival to XRP, the native crypto asset of Ripple. However, there is much more to the dynamic since the two cryptos have very different operating models. In recent developments, XLM has integrated smart contracts and partnered with MoneyGram to expand the ecosystem. The project is serving to only prove its unique utility.
How is Stellar Lumens helping Moneygram?
The integration for smart contracts support is one of the biggest measures taken by Stellar Lumens. Notably, the announcement for the integration has caught the attention of not just investors, but also FinTech stakeholders.
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As smart contracts made their debut on the XLM ecosystem, Timer Weller, Stellar’s VP of Tech Strategy unveiled that they have partnered with MoneyGram. The coalition will help support crypto-to-cash conversions in about 300k international locations.
AMMs on XLM have introduced more efficient pathways
AFter the debut of smart contracts, experts noted that one of the significant use cases where smart contracts and international remittances come together is the AMM. These Automated Market Makers allow trading to take place in a DEX without needing a centralized authority to get involved.
According to Carolyn Yi, Automated Market Makers on Stellar Lumens have introduced more efficient pathways for cross border transactions. As of January 10,2022, about 30% of swaps were routing through the AMMs. Moreover, these markets have introduced the ability for developers to flexibly source liquidity for any XLM-based project on-demand.
While talking about the goals, developers of the project stressed that they would work on achieving network scalability by using “trust-minimized innovation”. Besides, their goals also include boosting engagement, innovation, and diversity.
Stellar’s possible foray into CBDCs
In the cryptosphere, we have observed some buzz about a possible foray of Stellar Lumens in the central bank digital currency (CBDC) space. The scenario is much like XRP which has partnered with Bhutan and Palau. Notably, XLM’s ecosystem uses a known name in the Ukrainian FinTech sector. However, Yi noted that the electronic Hryvnia project is not a CBDC since such money is issued privately. However, a spokesperson from the Stellar Development Foundation underscored that the project is in talks about potential CBDC partnerships.
Source: https://www.thecoinrepublic.com/2022/01/27/stellar-lumens-partnered-with-moneygram-to-expand/