While Facebook Libra struggles with regulatory problems, some of its partners join the competitor project Celo.
The giants like Andreessen Horowitz, Coinbase Ventures, Anchorage, Bison Trails Co and Mercy Corps were revealed yesterday to be among 50 other members on Cello Alliance of Prosperity. According to the official statement, the goal of the coalition is to bring organizations together to solve real-world problems.
The new alliance is forming just after the regulatory issues from around the world led Facebook to redesign Libra. Despite the fact, that this might potentially create a conflict of interest, some members are probably hedging their bets. As Chuck Kimble, the strategist behind the Celo Alliance told Bloomberg:
There are some similarities in terms of mission, which is why there are some people who have joined both alliances.
Although Celo, an open platform with a focus on technology and products to increase financial engagement worldwide, is sharing similar features with the Libra project, it also has differences.
Since Libra accepts government-backed currencies such as US Dollar and Euro, Celo will be capable of hosting some other digital coins as well. The company announces, that sending Celo Dollars, regional currencies or commodity-based stablecoins will be as easy as sending a text message.
The project aims to make digital assets more accessible and useful by creating solutions, that work across devices, carriers and countries. In other words, to create a global payment infrastructure, to support the process of humanitarian funding and enable microlending through a blockchain-powered cryptocurrency Celo Dollar.
Celo Dollar, the initial Celo stablecoin will be pegged to track 1 US Dollar. The initial overcollateralized reserve backing will consist of Celo’s native asset, Celo Gold (cGOLD), as well as other liquid cryptocurrencies like Bitcoin and Ether, says the official announcement. The cryptocurrency is scheduled to be released this April.