The developers of the Celo decentralized protocol are planning to launch the cEUR stablecoin, which will be backed by a basket of digital assets pegged to the euro. The launch is scheduled for March 2021.
This was announced by Marek Olszewski, a partner at cLabs, a firm involved in the development of the project. The protocol is still at the testing stage, but in a few months the developers will be ready to “release it”.
Last year, Celo platform introduced a stable USD-backed cUSD cryptocurrency that can be used for payments via mobile devices. According to CoinMarketCap, the Celo Dollar is currently priced at $ 1 and its market cap is around $ 28.7 million.
According to Olszewski, the stablecoin will be backed by a basket of digital assets pegged to the euro, which will be algorithmically adjusted to keep the cEUR price as close to the pegged currency as possible. A representative from cLabs noted that having a diverse set of cryptoassets contributes to stability, so the community is discussing the possibility of adding and creating other types of assets.
As a reminder, Celo launched the mainnet in May last year. The protocol is already used by Anchorage, Ramp, Coinbase Ventures, Ledger and Blockchain.com. Celo’s developers have begun creating stablecoins pegged to fiat currencies to increase the availability of financial services. This idea is very similar to Facebook’s Libra coin concept.
According to the updated Libra white paper, the LBR rate will be calculated based on a basket of stablecoins pegged to different local currencies. However, later, the leadership of the Libra Association announced that it would not immediately launch a multicurrency stablecoin – first, it is planned to create stable cryptocurrencies, each of which will be backed by a certain currency.
