Hey guys today I’m going to talk to you about stellar lumens stellar is a nonprofit organization whose mission is to produce cheap monetary services that are accessible through any and all so as to fight financial condition and change everybody to develop their potential without economic restraint stellar has all the potential to become the next big ICO platform on a high level stellar connects banks payment systems and people around the world you could think of it as infrastructure for payments designed from the start to make it really easy for financial institutions to issue tokens representing fiat currencies a stellar also features a built-in distributed exchange which allows people to not only buy and sell currencies like in a typical foreign exchange way but also to seamlessly convert from one currency to another during cross-border or cross currency transactions it works like a distributed exchange launching a token on seller is super easy simple tokens can be created in a matter of hours and more complex ones take a day or two because stellar supports simple programming you don’t need to hire expensive solidity smart contract developers investors can also participate in stellar based icos using aetherium or Bitcoin just like they’re used to they’ve successfully launched their first ICO Mobius and I think their lightweight model will attract more projects who aren’t looking to build through aetherium essentially once people realize this is a slightly more decentralized version of ripple with half the circulating supply and IBM backing them it’s gonna take off more than it already is it has a huge focus on micro payments and quick transaction times so let’s dig into five reasons why we believe stellar could be the future of global payments and number five did we mention the IBM backing IBM and stellar have a common purpose to fix a genuine problem and they have determined to stick together to make that happen the IBM stellar Universal payment solution represents a shift in the way traditional and now non-traditional financial institutions can send value the world with as little fraction as legally possible the folks is stellar want to see the world move past the 40 plus year old fragmented system that we all suffer in today and move towards a system that is more fair and equitable for all this partnership is not just long term it’s tight stellar joined the hyper ledger foundation in addition to partnering on this project there are many upcoming projects coming this year about to be announced the fourth reason is that stellar lumens is already active in being used in very practical ways volume only increases more partnerships are nuts results will be seen very soon q1 of 2018 xlm while relatively small today is growing fast more and more people are using lumens and trading them actively they have a strong desire and requirement to open up the market for Fiat to xlm at the institutional level they have one major market mover right now and 14 major institutions involved in direct or indirect capacity on the network starting in q1 2018 you should see more of these institutions redirecting payment traffic on this network the third reason is that stellar has a major advantage over other cryptocurrencies because it is already compliant with regulations regulation of initial coin offerings icos appears inevitable over the past couple months authorities from numerous jurisdictions have issued statements declaring that tokens may be subject to various consumer protection anti money laundering and security regulations on the more extreme end Chinese and South Korean authorities have made the decisive move to halt all icos in the US the security Exchange Commission the SEC has issued an analysis deeming the Dow tokens to be securities they’ve announced the creation of a cyber unit that will investigate ICO and blockchain related misconduct and charged to icos was selling unregistered securities and defrauding investors these developments are a harbinger of future investigations enforcement actions and government policy making these actions are warning shots for organisations who disregard regulatory requirements defraud token buyers manipulate markets and misrepresent their business and/or technology additionally they also generate confusion and uncertainty for technology focused builders who may inadvertently run afoul of regulations due to unfamiliarity with the necessary requirements fortunately there is a crop of emerge organizations that spa opportunity in this confusion and hope to assist entrepreneurs with compliant tocut offerings as more regulatory developments unfold it is likely that many icos will suffer legal challenges for their self-proclaimed non-security status given the uncertain regulatory landscape there are multiple benefits to presuming that one’s token would be categorized as a security although creating a security token invokes additional restrictions and requirements issuing tokens through a pre-existing regulatory framework significantly reduces legal risk compliant organizations have certainty that they will not suffer Ex essential business interruptions from private litigation and enforcement actions arising from unregistered securities offerings moreover issuing tokens under the existing securities frameworks helps to define token buyers expectations and rights and could potentially result in higher investment returns the fourth reason is that it has a proven model as it already has the unique technology to issue any asset directly a very unique capability with stellar is the ability to issue an asset directly on the network and specify how that asset is managed on the network and what nodes validate and confirmed transactions this means seller can work with other parties such as traditional fiat currency issuers to gather traditional and non traditional financial institutions can settle using a cryptocurrency with those transactions directly tied to counterterrorism financing and type money laundering and no your customer processes required by regulators around the world basically it’s the missing piece those institutions need to move forward transacting with cryptocurrencies the last reason is that steller allows for any financial instrument to be transferred as a type of money to anyone in the world for free instantly and in any currency this is not just automation it is revolutionary while Bitcoin has contributed the following a store and proof of possession and transmission of value the conversion of real-world resources electricity into a digital asset an immutable public record solving the double spend problem the seller lumen solves the remaining problems by digitally representing existing currencies and assets making payments interoperable across institutions and currencies and providing a highly scalable system with three to five seconds to confirm transactions in other words Bitcoin was designed to be a new currency not to be a unifying Universal payment network from an investor’s perspective stellar will be used in every transaction so demand for stellar units will increase xlm is used to settle clear transactions for Forex fiat currency is buying xlm and vice versa as part of forex transactions it will work something like this person a who has a USD who wants to pay a farmer person B in Fiji who wants fiji dollars person a tells their institution to execute that transfer of value the institution debits their USD account based on the quote from USD to xlm to fjd and sends exilim to the recipient institution who then chooses to hold their xlm for other transactions or immediately sell them to a market maker this is the first step to creating a world where excess capital and whatever denomination can be used to invest in any other jurisdiction however it doesn’t stop at forex only the purpose is for a clearing ledger that not only clears forex transactions but really any transaction resulting in a transfer of value so think cash for securities or t-bills for asset backed assets any financial instrument can be used as money sellers vision is still allow the legal safe compliant payment using any asset for any asset globally so guys there you have it stellar lumens a great cryptocurrency you should definitely be watching and thinking about getting it to before it grows even more so thank you very much for watching if you enjoy the video please click on that like button and if you’re new here and want to continue to receive high-quality crypto analysis on a daily basis by all means hit that subscribe button and be sure to hit the Bill next to it to be notified when we release new videos we’re also putting out a daily newsletter so you should definitely look out for that in the description below have a good one guys peace [Music]

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