- Swiss online payment company, Centi, announced the launch of the Centi Franc Stablecoin, a stablecoin pegged to the Swiss franc, backed 1:1 by a Swiss bank.
- This stablecoin will serve as the foundation for Centi’s innovative global payment network, which will reduce both costs and time between transactions.
The stablecoin or stable coins play a key role in the crypto ecosystem: these, without the volatility of the rest, allow payments to be sent around the world without the high commissions and conditions of the traditional economy. The most important ones are paired with the US dollar, although the tendency to do so with others is also growing.
The renowned Swiss startup Centi announced the launch of its own stablecoin, the one that is pegged to the Swiss franc. The token was named Centi Franc Stablecoin (CCHF) and is backed 100% by a Swiss bank guarantee the one that was not clarified.
CCHF will serve for the Centi payment network
From his vision, the company wants this first approach to function as the basis for its “Global Payment Network”, which uses blockchain and Web3 technology, which allows it certain advantages.
Among its advantages stand out reducing both cost and time that “it takes merchants to settle transactions and receive funds”, as reported by the site CryptoSlate. In this way, the settlement is given in real time between the buyer and the seller.
This seems to be an extremely interesting initiative for businesses and his proposal could compete with the big names in the industry such as PayPal, VISA and Mastercard. Centi ensures that using its platform is 90% cheaper than the competition previously named.
The Swiss company has a philosophy close to that of Satoshi Nakamoto, who created a network in which intermediaries are not necessary to carry out a negotiation. In this case, they point out that the intermediaries, which in this case are themselves, do not keep large commissions or apply the famous “additional costs”.
“Our technology uses the efficiency of the blockchain to reduce payment processing fees without requiring users to understand anything about cryptocurrency. Our payment solution is the first use case for this technology and many others are expected to follow.”highlighted Bernhard Müller, who is the founder of Centi.
As the company’s creator indicates, both users and traders do not need to have knowledge of cryptocurrencies to be able to operate with the advantages of the stablecoin.
“The network is fully integrated with existing checkout and point-of-sale payment systems, so merchants can quickly onboard without the need for additional hardware or software,” he added.
Are there stablecoins tied to the Mexican peso?
The arrival of this novelty in Switzerland already exists in Mexico since May of last year from the creation of MXNT, created by Tether, the company behind USDT, the world’s largest stablecoin. It recently crossed the $75 billion dollar line mark.
This token, which is linked to the Mexican peso, works as an alternative for those who send remittances, for example. There is no longer only the option of sending dollars, which must then be converted into pesos, but you can directly send “digital pesos”. At the moment it only runs on the Ethereum, Tron and Polygon networks.
Another stablecoin linked to the Mexican peso is MMXN, Developed by the firm Moneta Digital. MMXN was created two years ago as a digital currency that provides access to various fiat-crypto products and services such as: medium of exchange, financial products, remittances, payments, store of value, and dApps/DeFi.
US dollar, Mexican peso and Swiss franc are not the only options within such a diverse market. There are also stablecoins pegged to the euro, the Chinese yuan, and more.
Stable coins play a decisive role in the proper development of the cryptographic ecosystem and the arrival of more alternatives means very good news. Switzerland is ready to enjoy these advantages.
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