The last few days have seen an increased interest in Stellar Lumens. That’s after the IBM head of blockchain development revealed that Stellar Lumens is now live on the IBM blockchain. But what is getting people excited is the mention of central banks. Lund has been quoted saying that,
“The most durable digital asset is one that is issued by central banks and represent fit currency in the real world.”
That’s an indication that the biggest aspect of the Stellar-IBM deal is to give central banks an efficient crypto that they can work with. The details of the deal have been broken down by different experts, but what I am most excited about are the implications to investors.
The most possible implication of this deal is that Stellar Lumens (XLM) will become the default crypto for central banks, since IBM already offers many of them tech related services. Besides, Lund has met with the heads of more than 20 central banks. Once this adoption happens, we are likely to see an upsurge in demand for Stellar Lumens by the average Joe, those who are yet to invest in crypto because they believe it’s “not money.” This demand will give Stellar Lumens a “2017 moment” again when money was flowing into Crypto from all quarters.
A collaboration with Central banks could also see Stellar Lumens (XLM) emerge as the leader in blockchain based finance, the same market that the likes of Ripple (XRP) are angling for. That’s because central banks are powerful entities, and their decisions have a bearing on the decisions of banks within their jurisdictions. In essence, the adoption of Stellar Lumens by Central banks could create a chain reaction where banks follow suit. The possibility of thousands of banks across the globe adopting Stellar is quite high, and the impact on Stellar Lumens (XLM) value will be exponential.
Closely linked to this is the issue of regulations. Central banks do play a role in the regulation of the finance industry. Considering that crypto is currently in a regulatory limbo, investors are looking for a crypto that is on the right side of a possible global regulatory framework. That’s why Ripple has seen massive investments in the last few months, because investors feel that it works closely with the regulated mainstream finance. But now, they have something that is clearly on the right side of any possible regulations. That’s because Stellar is working with the shapers of regulations, and that’s Central banks. On this basis, the next few weeks are likely to see an upsurge in the levels of investment in XLM, by people who believe that regulations will favor this crypto.
That excitement is already building up, and crypto has made some significant gains in the last 24 hours. It’s an indication that investors are coming in, trying to take advantage of its low prices, in anticipation of a possible price rally. It really doesn’t take an analyst to know that Stellar Lumens (XLM) is headed to the moon!