The United States Securities and Exchange Commission [SEC] and Ripple have been in the spotlight lately due to their role in a case surrounding the legal status of XRP. With doubt still remaining, many have turned their attention to other cryptos, such as Stellar Lumens [XLM], an altcoin led by Jed McCaleb, a former Ripple executive.
Stellar Development Base, like Ripple, has sought to distance itself from the uproar by moving into a larger variety of products, offerings, and collaborations. However, there are still questions among holders regarding the XLM token’s status. SDF CEO Denelle Dixon recently answered these issues, explaining that XLM is more geared towards utility.
“What we do at Stellar and at the Stellar Development Foundation, is we’re focused on using these technologies, that includes the token. The token, it’s a utility on XLM and so we focus on leveraging that bridge currency on the network.”
During an interview, Dixon highlighted the network’s use cases and Stellar’s use, and went on to state that, from the Foundation’s perspective, XLM is a “bridge currency on the network and is a utility.”
Given Jed McCaleb’s position in Ripple, XRP and XLM have a complicated history. His departure from Ripple raised many eyebrows, and the launch of Stellar Lumens was seen as a challenge to Ripple and its native token XRP. However, Stellar was able to go its own direction over time, considering the fact that the contractual payment of XRPs to McCaleb is still seen as a challenge.
Nevertheless, no legal issue with the sales or status of XLM has been raised by the SEC yet.
Meanwhile, the Stellar network continues its mission to close the divide between all fiat currencies. Bermuda’s digital dollar will be added in January 2021, trailing in the footsteps of Ukraine.
According to the executive, these ventures have been operating independently, with the network only assisting where there is a technical hiccup or an ecosystem growth. The network has been expanding to include more fiats due to its swift transfers and low fees, and it could soon consider other countries such as Nigeria, Mexico, Argentina, and Brazil to put their fiat onto the network.
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