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Telecom giant Deutsche Telekom invests in crypto Celo

 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.

Telecom giant Deutsche Telekom invests in crypto Celo

  • 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.