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The developing world will anchor Stellar Lumens (XLM) growth

While massive strides have been made towards providing financial services to people in the developing world, this still remains a challenge. That’s due to high costs, as well as other challenges that make it almost impossible for developing countries to efficiently offer banking services. That’s why I believe there is a massive opportunity for Stellar Lumens (XLM) to fully bridge this gap, and grow in value. Let’s go through some of the ways in which, the developing world angle to finance will push up XLM in 2018 and beyond.

  1. Remittances are big business, but inefficient

One of the greatest source of foreign currency for the developing world is remittances by citizens living abroad. The business of remittances is big, hitting close to $500 billion in 2017. Unfortunately, remittances are not efficient.  When done through the banking system, it’s costly due to high forex charges among other commissions. That’s why people prefer sending money through other cheaper though, not 100% secure systems like the Hawala system.

That’s where Stellar (XLM) comes in. It is designed to allow for almost transaction free payments across different currencies, and it’s safe! This makes XLM the perfect platform for efficient and cost-effective transactions in the multi-billion remittances industry. This could push Stellar Lumens to double or even triple digit valuations, going into the future.

  1. Agency banking is picking up in the third world

As banks look for more efficient ways to bank the rural and almost unreachable populations in the third world, one of the strategies they have adopted is that of agency banking. Stellar Lumens makes this banking model way more efficient since it eliminates the overhead costs that come with it. Essentially, this means that banks can provide services even in the remotest parts of the planet.

This makes Stellar Lumens (XLM) the prime candidate for adoption by banks in the third world, as they seek to push their customer base and grow their profits. Once this starts happening, and it will, Stellar Lumens will get a significant value push.  Basically, XLM is poised to become the technology that anchors banking penetration throughout the third world, and that’s big!

  1. Banking the poor is expensive business

One of the problems that banks in the third world face is that of offering efficient banking services to the poor. For instance, offering them loans and other profitable banking services is virtually impossible due to the high costs involved.  Stellar Lumens has the potential to completely transform this. That’s because it makes low-cost loans to the poor possible, as well as allowing them to make tiny savings with the banks.

This can significantly grow third world bank liquidity levels, while at the same time increasing their asset levels (loan amounts). Basically, banks in the third world have 101 reasons to adopt Stellar Lumens (XLM). Once they do, it will take central stage in their loans and savings operations, and this will inevitably push up the value of this crypto.

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This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.


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  1. Banks will continue to ban any cripto currency not created by their selves. Imagine they are like Taxi to Uber, Banks to cripto currencies.

  2. Some good points in this article however It probably needed a summary point t to really get the final message across.

    I personally don’t think banks will adopt stellar. The adoption will be at a a grass roots level thus bypassing the banks who have turned their backs on the poor who arent profitable.

    Ive traveled through a lot of third world countries and these days mobile phone use is high amongst even the poorest communities. I think you will eventually see the unbanked doing their own banking on their phones via the internet using Stellar (or something similar).

    Just my 2 cents

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