A new stablecoin linked to the value of the Chilean peso is now live on the open source payment network Stellar, but has yet to prove itself to users.
Chilean company CLPX Inc has launched what it describes as the very first stablecoin indexed to the Chilean peso, dubbed the “CLPX” token.
According to Stellar Expert’s public ledger, since launch on Monday, stablecoin has registered a limited volume of just $ 12,689 out of a total of 12,902 transactions.
CLPX was designed to provide a cheaper alternative to traditional peso-based remittances, with the company using the Stellar network because it incurs “considerably” lower fees than wire transfers or remittance services.
“The new CLPX token is designed to streamline remittances and make it easy for investors around the world to use the Chilean copper-linked peso as a hedge,” said an announcement.
CLPX also aims to provide international exposure to the booming copper market in Chile, which has been a key driver of economic recovery amid the global pandemic. The Latin American nation is by far the world’s largest producer of copper, with China being the main buyer of red metals from Chile.
While the project has expressed its strong ambitions, it’s unclear how ready the stage is for it to happen. Aside from the low volume, CLPX Inc is owned by a relatively unknown company named “KB Trading” which does not have any partnerships listed on their website.
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While there has been a growing trend in Latin American and Spanish speaking countries to work towards crypto adoption following El Salvador’s Bitcoin law, the regulatory landscape has been fairly calm regarding Chile.
At the end of May, Chile’s National Electricity Coordinator (CEN) announced the Renova initiative which will use blockchain technology to track and record the use of renewable energy behind the country’s copper production.
The Central Bank of Chile has been studying the subject of blockchain and CBDCs since 2018 as part of its “strategic plan for 2018 to 2022”.
In 2019, Mario Marcel, Governor of the Central Bank of Chile, released a research report indicating that the central bank was considering a Chilean CBDC for wholesale adoption and cross-border payments, but also raised concerns about infrastructure costs, cybersecurity and anonymity at the time.
