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The Celo network is an impressive blockchain ecosystem, where its native encryption currency CELO and a range of stablecoins play a key role. CELO serves as the cornerstone of the ecosystem, undertaking multiple responsibilities. First of all, CELO is an important tool for network governance. Holders can participate in major decisions such as protocol upgrades and parameter adjustments, thereby influencing the development direction of the entire network. Secondly, CELO is also the "fuel" for network operations, and users need to pay CELO to complete transactions and execute smart contracts. In addition, by staking CELO, users can become validating nodes, participate in the network consensus process, and receive corresponding rewards. It is worth noting that the value of CELO will fluctuate with market supply and demand, and its price is closely related to the overall development of the Celo ecosystem and user activity. Compared to CELO, the stablecoins in the Celo ecosystem (such as cUSD and cEUR) have different characteristics and uses. Taking cUSD as an example, it employs an innovative "over-collateralization" mechanism to maintain price stability. Issuers are required to pledge CELO worth more than the value of the issued amount (typically with a collateralization ratio exceeding 150%). This mechanism can adjust the price by automatic liquidation or replenishing collateral when the price of cUSD deviates from 1 dollar. The design of Celo's stablecoin embodies its concept of inclusive finance. They support low-cost cross-border transfers and daily payments, allowing users to easily operate with just a mobile phone, without the need for complex financial accounts. This convenience enables financial services to reach more people who are not covered by traditional banking systems. It is worth mentioning that the decentralized nature of Celo stablecoins is also a significant feature. Unlike traditional stablecoins that rely on centralized institutions for issuance and management, the issuance and price adjustment of Celo stablecoins are fully executed automatically by smart contracts. This mechanism greatly enhances transparency, as all collateral data can be publicly queried on the blockchain. Overall, the Celo ecosystem provides users with a cryptocurrency environment that combines flexibility and stability through the clever design of its native tokens and stablecoins, making a positive contribution to the application of blockchain technology in the field of inclusive finance.

Author: Filippo Armani Compiled by: Tim, PANews PANews Editor's Note: This article is excerpted from Part Three of "The Money Layer: LATAM Crypto 2025 Report," which focuses on the current state of local stablecoin development in Latin America. The following is the translated content. Stablecoins have become the backbone of on-chain economic development in Latin America. Dollar-pegged stablecoins and local currency stablecoins have replaced volatile assets, becoming central to crypto applications, and continue to maintain several times growth momentum. Key Points:

The mission-driven blockchain looks towards mainstream adoption of Web3 with a re-imagined logo, branding, messaging, and website The brand evolution sees planned launches from Opera, GoodDollar, and an NFT auction with Valora and Arigallery featuring artists from Celo’s global ecosystem Celo’s n

The mission-driven blockchain looks towards mainstream adoption of Web3 with a re-imagined logo, branding, messaging, and website The brand evolution sees planned launches from Opera, GoodDollar, and an NFT auction with Valora and Arigallery featuring artists from Celo’s global ecosystem Celo’s n

The mission-driven blockchain looks towards mainstream adoption of Web3 with a re-imagined logo, branding, messaging, and website The brand evolution sees planned launches from Opera, GoodDollar, and an NFT auction with Valora and Arigallery featuring artists from Celo’s global ecosystem Celo’s n