The Celo blockchain platform which is designed for financial applications is now creating a bridge to Bitcoin using its ERC-20 token tBTC.
Bitcoin pegged ERC20 token
tBTC is an ERC20 token pegged to Bitcoin that allows holders to become a part of decentralized finance solutions of the Ethereum blockchain. Celo also wants its Bitcoin holders to use the token on its platform. tBTC and The Celo Foundation.
cLabs CTO Marek Olszewski said, “We selected tBTC as the safe way to establish a bridge between BTC holders and the Celo community. We share the core values of the teams behind tBTC to make financial tools accessible.” cLabs is the group that created Celo blockchain.
Celo blockchain promotes DeFi
Celo is a blockchain platform designed for creating DeFi tools for mobile phones. They are not designed for providing humongous returns on investments but facilitate global financial inclusion. The light client can be used on any smartphone, even when there is low-interest connectivity. Celo is developing a competitor to the Libra project by Facebook. Its competing authority is called Alliance for Prosperity. The members of the Alliance are dedicated to the development of blockchain technology, specially the stablecoin by Celo. The aim of the technology is to create a more financially inclusive world that can provide everyone access to capital and credit.
Bitcoin constitutes the majority of the crypto market cap and Celo wants to incorporate it into its long-term goals. In a recent press release, the company said that it wants to tap into the liquidity for making it work on Bitcoin on DeFi apps. Bitcoin, it said, “will be crucial to the long-term growth of the crypto economy.”
tBTC was built by Keep and is designed on a decentralized concept. It will help users in the Celo ecosystem to use Bitcoin within the ecosystem. It will now be accessible to 6 billion smartphone users around the world in a non-custodial and permissionless way.