In an AMA with the r/btc community, Jesse Lund gave his opinion on the status of Stellar’s classification. He also spoke about IBM’s universal payment system. This comes after he revealed that companies are moving into the cryptocurrency exchange space and the make-up of IBM’s blockchain team.
On the XLM token’s classification, Lund said that he believed that Lumens has a utility relative to the Stellar network in a way similar to Ether having a utility relative to Ethereum network. He also added that Stellar operates as cash and as a currency, possibly a utility than it does a security. He also said that Stellar is a “wonderful” product. He said:
“When the dust settles, regulators are going to start taking more precise measures of the different types of tokens and they won’t be lumped into the category of cryptocurrency.”
Lund spoke about IBM’s Universal Payment System. The system was piloted last year in October using Stellar as the base network. Lund stated that the Stellar partnership has “never been stronger” and that it is “very strong and very healthy for both sides”. He said:
“That solution is still being prepared for wider adoption, we continue to actively work on that solution and to prepare it for wider global adoption by banks and non-bank financial institutions.”
Lund was asked about the possibility of a convergence with existing payment solutions such as Visa and CLSNet. CLSNet is a payment solution offered by CLS, which utilizes Distributed Ledger Technology [DLT] to process settlement services in the foreign exchange market. He said:
“I don’t see a convergence of the universal payment solution directly with these [Visa and CLSnet] but I do see portions of it working and interoperating with CLS.”
When asked about how liquidity would be acquired in the IBM Payment System, he said:
“In essence the model of the universal payments solution is for IBM to provide a network that brings together money service providers which could include banks but also non bank entities that provide end points on the network.”
He then added that these entities would be providing the liquidity between cryptocurrency and fiat. IBM is building a network of networks so as to allow different money service businesses or banks can use each others’ endpoints and move money in real-time clearing with settlement and finality anywhere in the world with low fees and low friction. He then added that IBM themselves would not provide liquidity and are only providing the network and API, along with standardization to allow participation.
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