Steve Walker, the founder of Task, has a few days ago taken to Twitter to share his experience with the traditional system of sending funds across borders. His experience best describes the major reason for the emergence of Stellar blockchain.
According to Walker, an attempt to send just £14.93 to the United States, in a real UK bank transaction, cost him £27.
Acknowledging the utility embedded in Stellar blockchain in solving such an issue, Walker said systems such as Stellar emerged not to replace fiat currencies, but to make their transactions fast and efficient for customers.
Steve Walker tweeted, “To send £14.93 to the US the banks charge me £27 (this is a real UK bank transaction). This is why we need systems from Stellar- not to replace currencies, but to make them fast, efficient, serving YOU the customer.”
To send £14.93 to the US the banks charge me £27 (this is a real UK bank transaction).
— Steve Walker (@stevewalkr) April 14, 2021
Issues with High Transaction Fees Still Abound In the Crypto Industry
Although Stellar Lumens (XLM) is capable of solving the issues with the cost of sending money across the border using traditional currencies, similar issues still abound in the crypto industry.
A good example is the current cost of using the Ethereum blockchain. Many members of the crypto community now see Ethereum as a blockchain platform for rich people. Retail investors are being dissuaded from using the network due to the high cost of initiating transactions on the network.
Although the issue is expected to be fully resolved once Ethereum undergoes the much-awaited upgrade. But the upgrade is taking too long to fully launch and the Ethereum network continues to experience congestion, which is skyrocketing the cost of using the network. So, people are starting to look for the best alternative.
However, a number of blockchains such as Stellar are designed to solve issues related to fees in cross-border remittance as earlier buttressed by the founder of Task, Steve Walker.