In November 2017 Clic.World demonstrated the world’s first Stellar ATM at the Singapore Fintech Festival, seamlessly transferring cash between Stellar Lumens (XLM), Singapore Dollars (SGD) and Uganda Shillings (UGX).
Although interesting and certainly a novelty at the time, the main purpose behind building the ATM was to practically demonstrate the concept of using XLM as a global store of value for any local fiat currency. (Shipping of the first of these Stellar ATMX units are scheduled for February 2018)
Now that we can convert cash easily into and from XLM, the question is what next? Why not use XLM as the primary store of value in the first place? If I can pay a merchant in local currency directly from XLM, why do I still need to use local fiat currency (cash in the bank) as a store of value?
This concept emerged over the last year as we were building the clic.world social banking platform on the Stellar blockchain, and was first implemented in October as part of the eSACCO Plus app for the first social banking pilot in Uganda, the eSACCO
As we have demonstrated with the eSACCO Plus app, a user can now move value seamlessly between the build-in Stellar wallet and the fiat currency e-value wallet in the app, giving a member a choice which store of value they want to use, XLM or e-value backed by cash in the bank.
To do this we developed the cliix.co exchange that we have been testing successfully in Uganda for the last 4 months to allow people to buy XLM directly using MTN and Airtel mobile money using local currency (UGX).
“I can vouch for cliix.co. I’ve only been able to get into crypto because paying with mobile money has been a breeze.” Solomon King, Founder Fundibots.org
The cliix.co exchange also allows the ClicPay platform (expect a formal announcement on the public release of ClicPay early in the new year) to do QR based mobile payments directly between any Stellar asset and local fiat currency. In addition to accepting payments, the ClicPay merchant POSX app will also allow merchants to buy and sell XLM for cash, thereby extending the reach of the cliix exchange to even the smallest corner shop in Africa.
So, really, why would you NOT keep your money in XLM as you head off to holiday abroad?
Using XLM as a store of value have benefits for both consumers and governments. For consumers the cost and complexity of transacting locally and cross-border will be largely eliminated, and financial authorities will have better visibility over the flows of money across the economy, with much improved control over regulatory compliance.
In regions like the East African Community this will have a huge impact on cross border trade and also on inward remittances from the diaspora community.
“The emerging global sharing economy is not a vision any longer, it is a reality and it is growing fast; and a universal store of value that delivers on the promise of fast, easy, free and secure transacting, while ensuring transparency and regulatory compliance in local fiat economies, is going to be a key driver for the accelerated growth of this new economy. Stellar delivers on all of them.”
-Andre van Zyl Co-Founder Clic.World
The Stellar blockchain has already proven itself as a formidable payment platform. (Just ask KlickEx and the IBM guys!) We believe that as a global store of value it will show its real strength in the years ahead.
Here’s a few key reasons why we believe so strongly in the future of Stellar: