The partnership between Deutsche Telekom and Celo is going to be beneficial for both companies.
Deutsche Telekom, one of the biggest European telecommunications companies, has broken new ground by being the first telecommunications company to invest in the cryptocurrency market. Today it has become known that Deutsche Telekom invested a substantial amount in the native assets of the open-source cryptocurrency platform Celo. Deutsche Telekom announced that it had made a “significant purchase” of CELO. The purchase was made through Telekom Innovation Pool, a strategic investment fund. Both Celo and Deutsche Telekom have refused to comment on the precise amount of tokens purchased.
Deutsche Telekom and Celo’s partnership is going to be beneficial for both companies, Deutsche Telekom plans to build infrastructure for Celo that allows Deutsche Telekom’s T-systems MMS to serve as validators with the aid of the Open Telekom Cloud or OTC. This regulation method complies with the security requirements of the regulatory framework of the European financial market.
Deutsche Telekom plans to allow validators to send verification SMS’s using their service and SMS API. This service is crucial to Celo, which relies on a diverse pool of SMS providers to bolster the safety of their decentralized phone verification protocol, a key protocol in maintaining Celo’s accessibility. Deutsche Telekom also plans to use Celo for remittances of network charges, amongst other use-cases.
Celo is a blockchain ecosystem that enables access to the DeFi market, services, and tools through mobile phones. The company aims to connect users with Digital assets and services available on decentralized exchanges and has been doing well. Their gimmick is a service that connects a users’ phone number to their crypto wallet’s public key, making accessibility more accessible to those who have no access to popular crypto platforms. Celo offers a CELO native token and two stablecoins (cUSD and cEUR).
Deutsche Telekom is a telecommunications giant with a customer base of 242 million based worldwide. This diverse customer base crosses many country lines and spends several currencies, making Deutsche Telekom’s move to cryptocurrency a smart one. Their partnership with Celo signifies the start of a new field of cryptocurrency technology.
Though Deutsche Telekom is joining Celo’s global Alliance for Prosperity, a network of over 130 nonprofits, trading, exchange, payment processing, and other assorted crypto-related firms, they insist on noting that their buy wasn’t an investment in Celoitself. However, it was an investment in the platform Celo is building in the positive successes of the alliance and the possible use-cases of cryptocurrency in the telecommunications field.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.