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How is Stellar powering financial systems regardless of international borders

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The Stellar network is an open blockchain network focused on collaborating with various global financial infrastructure. The blockchain network is completely decentralised in nature. The entire financial network helps businesses and developers by providing them with the feature of “near instant settlements” as well as minimal transaction fees on the entire blockchain network.

Upcoming global payment standard

Around the world millions of people employed in developed countries send remittances to their extended families living back in various developing or underdeveloped countries. These remittances form a significant form of the GDP of various such countries and help in the economic development of such countries as well as power a significant amount of their GDP.

However the current financial systems are fraught with numerous problems such as slow speeds and high prices. This results in the entire process turning out to be a cumbersome and a costly affair which leaves various sections of society as marginalised.

In order to rectify the process the Stellar network was developed which focuses on minimising the existing friction in various such processes. Along the way the network is focused on curating a global payment standard wherein there will be no consideration regarding the borders and individuals can participate in any financial transaction without giving a thought about their borders.

Execution of an upcoming financial standard

The Stellar network brings in speed and scale with the help of the efficiency of blockchain. The transaction on these networks happen between the fiat currency and digital currency while being powered with the help of anchors. The anchors are various regulatory financial institutions and financial technology organisations that issue the 1:1 fiat backed stablecoins which serve as on/off ramps into any local payment systems. The anchors connect the Stellar network with the global financial systems.

The Stellar network with the help of anchors power the global financial systems by enabling users to transact money on the network without the fees as well as the latency which is pre existing in various cross border as well as cross currency remittances across the traditional financial networks.

Overall the Stellar network is bringing innovation in cross border remittances with the help of anchors and building a bi directional channel wherein customers can easily trade as well redeem these stablecoins efficiently without any major issues.