Why Celo launched an algorithmic stablecoin pegged to Brazil's currency

Quick Take

  • Open-source blockchain Celo launched a Brazilian Real-pegged, algorithmic stablecoin (cREAL). 

  •  Crypto exchanges FlowBTC, NovaDAX and Ripio will support the stablecoin.

Open-source blockchain Celo recently introduced a Brazilian Real-pegged, algorithmic stablecoin called the Celo Real (cREAL). 

Three crypto exchanges in Brazil will provide access to the cREAL stablecoin: FlowBTC, NovaDAX and Ripio. In addition, the wallets Bitfy and Coins will also support the digital asset. Algorithmic stablecoins are designed to hold their peg to a currency automatically, instead of being backed by fiat money. 

While Brazil already has a very popular public instant payment system, called Pix, CLabs partner Markus Franke told The Block that the cREAL now provides a way to use complementary DeFi applications (CLabs is a “service organization” focused on developing and growing Celo projects). For example, Celo’s DeFi applications could help enable new options for building up a credit history, he said. 

“Celo is completely open-source, so there will be projects that will build a bridge from Pix to Celo transactions,” Franke said. ”There will be people who build lending and borrowing applications, so I think this is really, really nice.” 

According to Franke, Brazil’s high penetration of smartphones and strong “gig economy" make the country an interesting market for launching a stablecoin in local currency that is focused on mobile payments.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy