Stablecoins are increasingly being used as a way to participate in the crypto asset space while minimising volatility. Switzerland-based Centi has capitalised on this popularity by offering a Swiss Franc-backed stablecoin. One blockchain-based payment token (Centi CHF or CCHF) is worth 0.01 Swiss Franc (CHF), creating a 100:1 relationship between CCHF and CHF.
Bernhard Müller (CEO and Founder of Centi) explained that the launch of a Franc-backed stablecoin was a natural choice because of the company’s Swiss roots and connections to the financial industry. He added that the Franc is also a popular option because of its low inflation rate.
‘It’s considered very stable. Switzerland is a neutral nation, which means that whenever there is any warfare in the world, people can be pretty sure that Switzerland will not engage in that and therefore the currency remains stable,’ he said.
A true ‘stablecoin’
Muller noted that Centi is not the first company to offer a Franc-based Stablecoin – but none are ‘true stablecoins’. He pointed to algorithmic stablecoins and stablecoins which attract significant transaction fees making them unsuitable for payment purposes.
‘So how is our stablecoin different and why use our stablecoin? First of all, it’s backed by a bank guarantee, which most stablecoins lack. Second of all, it’s suitable for micropayments, – it’s really made for payments and utility and not just arbitrage trading, which is the purpose of most of the other stablecoins.
‘It’s also direct to the consumer, meaning you don’t have to go through yet another intermediary or exchange. You can buy it directly from us and you can also return it directly to us. Even as a consumer that just holds 100 or 200 francs.’
He noted that the Centi Franc can be used at over 125 merchants, with this list growing weekly. It is curated directly by the team at Centi and includes everything from toys to wine and financial services.
Looking forward for Centi
Muller noted that the next step for Centi is a big marketing push as it has all the pieces in place to serve merchants and consumers. ‘With this stable coin we now also have a medium which people already think in. We are already generating revenue and now it’s all about growing this revenue.’
Muller added that he and his team are also currently exploring additional revenue sources, including a new partnership with Centbee which is poised to make cross-border money transfers to Africa more streamlined, cost-effective and inclusive.
‘What I think is noteworthy about Centi and the way we handle payments is that we really disintermediate payments. So we are a body helping a consumer or a merchant, but the consumer is always in full control of their money.’
Built on the BSV blockchain
Muller noted that the BSV blockchain is core to Centi’s development but that users do not need to know anything about blockchain or crypto assets to use their services. Instead, the BSV blockchain acts as ‘plumbing’ in the background which makes all of this possible.
‘The reason we chose BSV blockchain is scalability, stability, the compliance compatibility but also the certainty that this blockchain has the goal to scale unbounded. Which is very important for any business you want to build on blockchain.’
‘Blockchain is a tool just like a cloud service provider or other technology you would use to build your business.’
