A new stablecoin pegged to the value of the Chilean Peso is now live on the open-source Stellar payments network — but is yet to prove popular with users.
Chile-based firm CLPX Inc launched what it describes as the first-ever Chilean Peso-pegged stablecoin dubbed the “CLPX” token.
According to the public ledger on Stellar Expert, since the launch on Monday, the stablecoin has seen limited volume of just $12,689 from a total of 12,902 trades.
CLPX was designed to provide a cheaper alternative to traditional Peso-based remittances, with the firm utilizing the Stellar Network, as it incurs “substantially” lower fees than wire transfers or remittance services.
“The new CLPX token is set to streamline remittances and make it easy for investors worldwide to use the copper-linked Chilean peso as a hedge,” an announcement read.
CLPX also has an eye on offering international exposure to Chile’s booming copper market, which has been a critical driver of economic recovery amid the global pandemic. The Latin American nation is currently the world’s leading copper producer by a significant margin, with China being the main buyer of Chile’s red metals.
While the project has talked up its strong ambitions, it is unclear how well the stage is set for it to perform. Apart from the low volume, CLPX Inc is owned by a relatively unknown firm named “KB Trading,” which has no listed partnerships on its website.
While there has been a growing trend in Latin American and Spanish-speaking countries working toward crypto adoption following El Salvador’s Bitcoin Law, the regulatory landscape has been fairly quiet concerning Chile.
In late May, Chile’s National Electricity Coordinator announced the Renova initiative, which will use blockchain technology to track and record the renewable energy usage behind the nation’s copper production.
The Central Bank of Chile has been researching the topic of blockchain and central bank digital currencies (CBDC) since 2018 as part of its “Strategic Plan for 2018 to 2022.”
In 2019, Mario Marcel, the Governor of the Central Bank of Chile, published a research report that stated the central bank was looking at a Chilean CBDC for wholesale adoption and cross-border payments, but it also noted concerns over infrastructure costs, cybersecurity and anonymity at the time.