CLPX, a stablecoin pegged to the Chilean Peso that launched on Stellar this week, is aiming to gain popularity in the remittance and copper markets, among other things.
It is now possible to use a stablecoin that is tied to the value of the Chilean Peso on the open-source Stellar payments network, but it has not yet gained widespread acceptance among users.
CLPX Inc., based in Chile, has created what it claims is the world’s first Chilean Peso pegged stablecoin, dubbed the “CLPX” token after the country’s currency.
According to the public ledger on Stellar Expert, the stablecoin has seen modest movement since its inception on Monday, with a total of 12,902 trades resulting in a total of $12,689 in value.
CLPX was created to give a more affordable alternative to traditional Peso-based remittances. The company chose to use the Stellar Network because it charges “substantially” fewer fees than wire transfers or remittance services.
“The new CLPX token is expected to streamline remittances and make it simple for investors around the world to use the copper-linked Chilean peso as a hedge,” according to the official statement.
Aside from that, CLPX is interested in providing worldwide exposure to Chile’s expanding copper market, which has been a crucial engine of the country’s economic recovery during the global epidemic.
In the present year, Chile is by a wide margin the world’s leading copper producer. China is the world’s largest importer of Chilean red metals, according to the World Copper Association.
While the project has talked up its lofty aspirations, it is unclear how thoroughly the groundwork has been laid for it to achieve success. The fact that CLPX Inc is controlled by a relatively unknown corporation entitled “KB Trading” and that it has no listed partnerships on its website is in addition to the low trading volume.
In the wake of El Salvador’s Bitcoin law, there has been an increasing movement in Latin American and Spanish-speaking countries to promote cryptocurrency usage; yet, the legal landscape in Chile has remained relatively quiet.
Recently, Chile’s National Electricity Coordinator (CEN) launched the Renova programme, which would employ blockchain technology to measure and record the renewable energy used in the country’s copper production. The plan was revealed in late May.
Because of its “Strategic Plan for 2018 to 2022,” the Central Bank of Chile has been investigating the topic of blockchain and CBDCs since 2018.
When Mario Marcel, the Governor of the Central Bank of Chile, published a research report in 2019, he stated that the central bank was considering the use of a Chilean CBDC for wholesale adoption and cross-border payments, but he also expressed concerns about the costs of infrastructure, cybersecurity, and anonymity at the time.
