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

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

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.

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.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

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

CoinDesk - Unknown

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

Trending

1
CoinDesk - Unknown
Three Arrows Capital's Su Zhu Looks to Sell $35M Singapore House

Zhu and his wife purchased the property late last year for S$48.8 million ($35 million) and now they are selling it in what analysts call a slowing market.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin, Ether Futures Rack up Nearly $200M in Liquidations on Short Squeeze

Price volatility arose as signs of looming recessions were renewed among investors, one analyst said.

CoinDesk - Unknown
3
CoinDesk - Unknown
Blockchain.com, Deribit Among Creditors That Pushed for 3AC Liquidation: Report

Blockchain.com has also said it is cooperating with ongoing investigations into the hedge fund, which "defrauded the crypto industry."

CoinDesk - Unknown
4
CoinDesk - Unknown
El Salvador Purchases 80 Additional Bitcoin at $19K, President Bukele Says

The last purchase by the Central American country had been in May.

CoinDesk - Unknown