What is a Celo Dollar? Celo Dollar is a stablecoin project that enables simple payment with cryptocurrency technology. In this article, you can find answers to frequently asked questions such as what is Celo Dollar, what is it for, how to buy CUSD. As Kriptokoin.com, we have prepared it for our curious readers. Let’s examine together.
What is stablecoin?
Stablecoins are an innovation that emerged in response to the high volatility of cryptocurrencies. This volatility is what makes using digital assets like Bitcoin and Ethereum risky. For example, if you decide to accept payment for your goods in Bitcoin, you cannot guarantee whether the prices of the currency will rise. When you pay with $10,000 worth of BTC, those BTCs could drop to $5,000 a month later. Stablecoins solve this problem by reducing the volatility problem of crypto as their value is pegged to assets like fiat money. As a result, they are fixed at a 1:1 ratio to assets such as the dollar, euro, lira and ruble. In this way, they act as a safe haven for investors.
What is a Celo Dollar?
Celo Dollar (CUSD) is a stablecoin developed by Celo that tracks the dollar’s value in a 1:1 ratio. The Blockchain behind cryptocurrency is a global payment infrastructure that develops financial tools available to anyone with a mobile phone. That’s why Celo Dollar is no ordinary stablecoin. Cryptocurrency and Blockchain technology are still emerging technologies. Because of this, many people are currently struggling to understand and adopt this technology. Celo wants to make this easier for the public by creating a mobile-first blockchain platform. That is, it aims to establish a new financial system accessible to anyone with a smartphone. Thus, anyone with a smartphone will have the advantage of paying with stablecoins. Although CUSD uses Blockchain technology, users can transact very simply.
What does Celo Dollar offer?
Celo needs minimal data requirements for its users. With its mobile-first structure, users can use crypto money without entering the complex world of Blockchain. Thanks to its “ultra-light client” technology, it makes it possible to pay from mobile with minimum data. However, Celo Dollar does not need complex wallet addresses on the Blockchain. Anyone can use their phone number as a wallet address through the platform’s application. In other words, you can send, receive and request CUSD through your phone number. Users can also use these phone numbers as an identification tool. They can leverage their data in the system without the usual complexities of banks and other financial institutions. By doing this, they can understand whether they qualify for financial services such as loans and insurance.
What is CUSD?
CUSD is an abbreviation for the stablecoin named Celo Dollar. It is located on the Celo and Near networks. It is a cryptocurrency created by Celo and pegged to the dollar to follow the US Dollar. This stablecoin is used in financial solutions such as making transfers and accepting payments. It stands out by making transactions faster, cheaper and easier to access. With a market cap of $49.8 million according to current market data, CUSD is the 395th largest cryptocurrency. Additionally, there are over 50 million CUSD in circulation.
How does CUSD keep its stability?
Celo Dollar maintains its stability algorithmically. Accordingly, Celo adjusts the demand and supply for each CUSD minted. Actually, the logic of this system is quite simple. When the value of 1 CUSD drops below one dollar, the project sells CELO tokens from its reserves. It then uses it to buy more CUSD on the open market. Thus, it reduces the supply and fixes the price of the token to one dollar. When the value of CUSD exceeds one dollar, the company maintains its stability by printing new CUSD and selling them to CELO. As a result, the USD/CUSD pair becomes even and the token is stabilized.
What is a Celo Dollar? What does CUSD do?
CUSD is traded on many exchanges with large trading volume. Among the exchanges that list stablecoin, Bybit, KuCoin, Bitget and Huobi Global stand out. Users who want to buy Celo Dollars need to access one of these exchanges and become a member. They can then purchase CUSD by verifying their account and depositing funds into their wallets.
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