Telekom reports investments in a blockchain project – and is thus also supporting a new euro stablecoin.
The ranks of euro stablecoins are growing. As can be seen from a press release available to BTC-ECHO, Celo is launching the Celo Euro (cEUR) on Tuesday, April 20th. No, this is not about a Frankfurt rapper, but about the blockchain network Celo. In addition to the Celo Dollar (cUSD), which plays in the third division with a market capitalization of just 43 million US dollars, the cEUR is the second stablecoin project of the San Francisco-based blockchain company.
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With the stablecoin, Celo wants to promote the financial inclusion of countries with dysfunctional financial systems. As a result, the press release states:
“Transferring money between countries is still a big challenge. This is mainly due to the closed systems created by traditional financial services, ”said Rene Reinsberg, co-founder of Celo. “An open infrastructure like Celo, coupled with the Celo Euro Stablecoin, enables easy access to digital assets in seconds from practically anywhere in the world.”
The advantage over the traditional financial sector is clear. Blockchain-based stablecoins can be sent almost instantaneously across the globe and are also significantly cheaper than other digital payments. Celo charges less than 1 cent in transaction fees. Celo also sees the elimination of the volatility typical of cryptos as an advantage. After all, cEUR is based 1-to-1 on the euro and it is known to be more stable in value than Bitcoin and Co., at least in the short term.
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Telekom buy CELO tokens
In addition, Celo reports that Deutsche Telekom is now one of the investors. Accordingly, the Telecom as the first telecommunications company to join the global Celo Alliance for Prosperity with its more than 130 member organizations. Said alliance is a non-profit organization that wants to create “global prosperity” with the help of a solid financial infrastructure. Celo, which in Esperanto means as much as purpose, was able to gain an important partner in Telekom. Because in addition to the financial donation, for which Telekom invested in the native CELO token, the company Celo also supports with cloud infrastructure.
With our investment in Celo in combination with the infrastructure operated by T-Systems, we are pursuing a strategic approach for participation in the public blockchain network. We support the Celo network both financially and with our own Cloud-Infrastructure,
says Adel Al-Saleh, board member of Deutsche Telekom AG and CEO of T-Systems.
Telekom has actually been a blockchain fan since 2019. As BTC-ECHO reported, the Telekom German Blockchain Ecosystem was announced for 2020. However, the project never went beyond the planning phase. This could not least be due to the fact that the industry has recognized that the blockchain is only useful for very limited use cases. Establishing the “blockchain for everyone” by watering has turned out to be a mistake. It remains to be seen whether at least Celo’s support will be crowned with success.