Mobile-focused blockchain Celo announced on Thursday (27) the launch of a Real-backed stablecoin, Celo Real (cREAL).
The stable digital currency is available for trading on cryptocurrency exchanges Ripio, FlowBTC and NovaDAX. In addition, Bitfy and Coins cryptocurrency wallets will also support the stablecoin.
According to the company’s statement, cREAL functions as a decentralized, crypto-collateralized algorithmic stablecoin. It can be used in centralized (CeFi) and decentralized finance (DeFi) applications and services on the Celo blockchain.
As cLabs partner Markus Franke highlighted, the lack of transparency, high costs, and long transaction times associated with fiat-tracked stablecoins have historically hampered the user experience. But with cREAL it will be different:
“On the other hand, cREAL can be safely exchanged for other fiat currencies and digital assets in seconds – with just a cell phone number – creating a pathway for people to use new financial products in their local communities,” he said.
In practice, users of NovaDAX exchange can spend cREAL with the prepaid crypto card issued by the platform. Meanwhile, Bitfy users can use cREAL on the Cielo network, a credit and debit card operator.
Celo is an open-source, proof-of-stake blockchain. The exchange also has the stablecoins cUSD, pegged to the US dollar, and cEUR, pegged to the euro.
Growth of the crypto sector in Brazil
In the statement, Celo emphasized that the launch of cREAL results from the increase in cryptocurrency adoption in Brazil.
According to the platform, in 2021, volumes traded in Brazil increased by 2.247%. In addition, about 30% of the Brazilian population now owns cryptocurrencies.
According to Camila Rioja, leader of the Celo Foundation for Latin America, the adoption of cryptocurrencies in emerging countries like Brazil signals a growing excitement about the subject. At the same time, it represents the advancement of use cases in the real economy.
“This traction, combined with the regulatory, economic and community landscape in Brazil, position the country in a unique way, and fertile ground for projects like Celo to thrive,” he added.