The United Nations Capital Development Fund (UNCDF) has officially endorsed Ripple and Stellar as key players in the creation of a new global payments network. This recognition emphasises their potential to transform cross-border transactions and promote financial inclusion. During a recent webinar, both Ripple and Stellar were identified as vital components of this emerging global payment system.
As part of the United Nations Development Programme, the UNCDF focuses on improving financial inclusion and enhancing economic opportunities. Their support for Ripple and Stellar signals the blockchain technology’s growing role in revolutionising the financial sector, particularly in cross-border payments.
The envisioned global payments network will be connected, regulated, and open, enabling seamless transactions across currencies worldwide. Ripple and Stellar’s history of success in cross-border payments makes them well-suited for this initiative. Ripple, known for its fast and efficient solutions, has partnered with Mercado Bitcoin in Brazil to streamline remittances, using blockchain to cut transaction times and costs. Ripple’s payment system now operates in over 80 payout markets, accounting for 90% of daily foreign exchange market turnover, with transactions exceeding $50 billion.
Stellar, with its focus on financial inclusion, has also played a critical role in advancing affordable financial services. Its platform enables the exchange of digital assets across borders, bridging cryptocurrencies and traditional banking systems. Stellar’s efforts align with its mission to provide secure, low-cost transactions, especially for the unbanked population.
In 2023, Stellar partnered with MoneyGram to introduce USDC transfer services, expanding its global reach to regions like the Philippines, Kenya, the U.S., and Canada. This collaboration further strengthens Stellar’s contribution to the global financial network, demonstrating its commitment to creating more accessible financial systems.
