Stellar Criticizes Global Financial System, Suggests Digital Dollar Issue

Denelle DIXON, CEO of the Stellar Development Foundation (SDF), spoke at the Consensus Distributed event. She criticizes that there are few innovations in the financial system, and that this system is vulnerable due to their absence. She also adds that the existing financial infrastructure is outdated and works on models that have not changed for decades. The consequences of this stagnation are evident during the coronavirus pandemic.

In some countries, such as the United States and Canada, governments have decided to send a direct subsidy to their citizens. However, this measure has been postponed, while the question of the most suitable method of its implementation is still discussed. In this regard, Dixon proposes the Stellar Lumens network as a suitable platform for issuing a digital dollar and any CBDC.

On the other hand, Stellar co-founder Jed MCCALEB said that although the Stellar Network was conceived as the basis for the CBDC but it is still a long way off. However, McCaleb noted that the SDF always keeps contact with governments to explore this possibility.

However, Stellar Lumens is not the only platform that has been proposed for issuing the digital dollar. The blockchain consortium Hyperledger and its project eThaler are another option for the CBDC issue. The eThaler project is designed to enable the central bank to issue digital currency on the Ethereum blockchain.

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