Telecom giant Deutsche Telekom invests in crypto Celo
For the first time in the telecom industry, one of its biggest players is jumping into cryptocurrencies.
- The German company, "Deutsche Telekom" --Deutsche Telekom - announced today, Tuesday, that it will buy the distinctive digital currencies issued by "Celo", the latter is an emerging company specialized in providing cryptocurrency services on mobile phones.
- The German telecom giant did not disclose the size of the investment, but a company executive told the source that the purchase of digital currencies was significant.
- The company is also investing in the infrastructure to support the “Celo” project, as Celo is building a decentralized version of the payment platforms similar to “Venmo” and works peer-to-peer.
- Project Celo was launched in 2017 and has maintained a relatively low profile in the crypto world, never standing out from the crowd.
- But that has begun to change in recent months, thanks in part to the recent $ 20 million funding round raised by venture capital firms, including “Andreessen Horowitz”.
- The prominent “Celo” feature is a tool that identifies users' phone numbers for a blockchain wallet's public key.
- This simplifies access to cryptocurrencies, especially for people in developing countries who may lack familiarity with technology or who do not have access to popular cryptocurrency trading platforms.
- On the face of it, Deutsche Telekom’s decision to engage with Celo is an obvious one, as it involves a phone company with ambitions cooperating with a company specializing in cryptocurrency applications on mobile devices.
- At the same time, it is difficult to see how the phone giant is specifically planning to integrate the features of the “Celo” project.
- For example, will the arrangement lead to the company promoting “Celo” to millions of European customers?
- According to Mr. Andreas Dietrich, CEO of Deutsche Telekom, who helps lead the company's blockchain initiatives, Deutsche Telekom sees a variety of opportunities with Celo, including remittances.
- He admitted that it was surprising to see the company's partner offer a strange alternative digital currency, but added that "Deutsche Telekom" liked the "Celo" team and that he believed the platform could be huge.
- Dietrich stressed that Deutsche Telekom's participation will be both as an investor and as an infrastructure provider.
- Dietrich also emphasized that by purchasing premium digital currencies, Deutsche Telekom is investing in the decentralized network that CELO is building, rather than the company itself.
- He added that the telecom giant has achieved a major strategic shift in its approach to cryptocurrencies, moving from a narrow focus on the "Hyperledger" protocol to exploring blockchains of all kinds.
The world of communications and cryptocurrencies:
- Deutsche Telekom's decision to invest in cryptocurrencies may be just the start of the industry.
- Celo co-founder Rennes Rainsburg predicts that most major corporations, including telecom companies, will own several digital currencies that will allow them to influence their management.
- Rensburg indicated that Celo, which has long offered a stable dollar currency, is on the verge of issuing a stable currency backed by the euro.
- The new currency is likely to play an important role as companies like Deutsche Telekom seek to build crypto-based transfers.
- In recent months, Celo has worked to elevate the role of its non-profit organization, Celo, which seeks to promote financial inclusion through cryptocurrencies.
- Earlier this month, Celo added former Citigroup chairman Dick Parsons to its board of directors.