The Celo platform aims to provide a more inclusive financial system by offering a blockchain-based infrastructure that facilitates financial services and applications, particularly for those who lack access to traditional banking services.
Celo Dollar is designed to maintain a stable value, aiming to closely track the value of the US dollar (USD). This stability is achieved through various mechanisms, including collateralization and algorithmic adjustments.
To maintain its value, Celo Dollar is backed by a combination of cryptocurrency assets, which serve as collateral. This collateral helps ensure that there are sufficient assets to redeem cUSD for its equivalent value in US dollars if needed.
Users can transact with cUSD, making it a suitable digital currency for everyday transactions. Celo’s goal is to enable low-cost cross-border remittances using stablecoins like cUSD.
