$30 Million Raised By Celo for Stablecoin-Based Smartphone Payment Plans
Celo, a Blockchain payments startup has raised $30 million from well-known crypto investors Polychain Capital and Andreessen Horowitz.
Celo plans to use an in-house digital token and stablecoin to facilitate cross-border payments with focus on the unbanked using smartphones.
The company which raised $6.4 million in previous cash injections is now conducting pilot-phase tests in Argentina.
Rene Reinsberg, cofounder of Celo, told the Wall Street Journal “We see big potential in letting people — directly on their smartphone — access basic financial services,”
“We are based on blockchain technology but for the average end user we try to abstract that away, to make the experience as easy as any other mobile app.”
The thirst for borderless payments without the need for banking credentials has long formed a preoccupation for cryptocurrency startups.
Celo plans to attract developers to build additional services on top of its platform. Of its two custom-built tokens, one will function as a transaction verification tool, while the other will be a U.S. dollar-backed stablecoin.
The one named Celo Dollar should end up as the native cryptocurrency for users sending payments to each other.