CLabs to Work With eCurrency to Integrate CBDCs With DeFi

Through the partnership, central banks launching CBDCs will be able to use the Celo blockchain to gain access to DeFi products.

AccessTimeIconApr 8, 2022 at 4:55 p.m. UTC
Updated May 11, 2023 at 6:01 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

CLabs, the organization behind developing the Celo ecosystem, said Friday it will be working with eCurrency, the technology provider that enables central banks to issue digital currencies (CBDC).

Through the partnership, central banks that are trialing or launching CBDCs will be able to use the Celo blockchain to allow end users access to decentralized finance (DeFi) products, according to a press release.

  • 'Consumer Protection' Is Needed for Crypto Industry, Sen. Lummis Says
    01:00
    'Consumer Protection' Is Needed for Crypto Industry, Sen. Lummis Says
  • Spot Bitcoin ETFs Are Ready for 'Prime Time,' Sen. Cynthia Lummis Says
    00:54
    Spot Bitcoin ETFs Are Ready for 'Prime Time,' Sen. Cynthia Lummis Says
  • Sen. Cynthia Lummis Is 'Optimistic' About Stablecoin Legislation This Year
    15:35
    Sen. Cynthia Lummis Is 'Optimistic' About Stablecoin Legislation This Year
  • Bitcoin Drops Below $39K; Donald Trump Pushes Back on CBDCs
    01:22
    Bitcoin Drops Below $39K; Donald Trump Pushes Back on CBDCs
  • The Celo blockchain allows native and non-native digital assets (cryptographic and CBDCs) to circulate freely across devices, carriers and countries, according to the Celo website. The blockchain uses phone numbers for public keys and issues a native stable-value token.

    ECurrency enables central banks to mint and issue CBDC instruments to financial intermediaries in compliance with existing legal frameworks. In 2021, eCurrency worked with the Bank of Jamaica on the pilot of the Jamaican CBDC (the Jam-Dex). The Ireland-based firm uses digital symmetric cryptography technology for central banks to issue and distribute CBDCs securely and efficiently, according to its website.

    “After seeing how Celo has opened new opportunities for end users, such as access to loans and savings, it’s only natural that cLabs extend the use case to CBDCs,” said Tim Moreton, chief executive of cLabs, in the release.

    The Celo Foundation announced "Connect the World," at its conference earlier in the week in Barcelona, a $20 million campaign to incentivize the development of high-quality Celo on- and off-ramps worldwide.

    The CELO token is trading up 30% over the last 30 days and spiked earlier on in the week during the protocol’s Celo Connect event in Barcelona.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Lyllah Ledesma

    Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.