Emerging markets around the world still lack widespread access to secure payment systems and an accessible banking infrastructure despite the rapid advancement of technology over the past decade. Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation (SDF), recently sat down with Business Reporter’s Rachel Hicks to discuss how Stellar is creating financial inclusion on a global scale. Below, we highlight three of the top takeaways from the segment.
Billions of dollars are transferred every year from countries where individuals work to countries where their families live. If payment systems were built on the Stellar blockchain, this flow of funds can be simplified and streamlined without relying on costly legacy payment systems. These legacy systems often burden users with extra fees induced by operational costs, which means less money people are able to send their families back home.
This lack of access stems from systematic issues, like not having access to identification or earning income. The downside doesn’t only exist on an individual level, but regionally too. The GDP of these economies benefit dramatically when women are able to participate and possess financial autonomy.
Financial tools built on Stellar allow businesses in emerging markets to gain access to credit, lending, and other financial resources that they had difficulty accessing before, allowing these businesses the opportunity to compete at the same level as their competitors in countries with greater financial access Since Stellar is open and permissionless, businesses and individuals using Stellar-powered applications can now join the global financial ecosystem. The scale, speed, and low transaction costs on the Stellar network is phenomenal for businesses who want to take advantage of quick and seamless transactions, with settlement happening in just a few seconds.