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Reports from March 11, 2020, indicate that some members of the Facebook-led Libra Association have thrown their weight behind a rival project, the Celo Alliance for Prosperity.
Bloomberg reports that the new project has the support of more than 50 members. Part of the membership consists of entities that are affiliates of the Libra Association. These include Anchorage, Coinbase Venture, and Andreessen Horowitz. The Celo Project’s aims at providing humanitarian aid, facilitating payments, and enabling micro-lending through the Celo Dollar.
All indications point to the cryptocurrency’s launch next month. Additionally, it will peg its value on the U.S Dollar. Furthermore, the Celo Dollar will have the backing of a reserve of other cryptocurrencies. In contrast, Libra will have the support of a basket of fiat currencies besides short-term U.S. Treasury bills.
The Alliance for Prosperity’s head Chuck Kimble intimated that its activities would focus on developing economies of Africa, Latin America and South-East Asia. Nevertheless, the new Coin will be available for the U.S market.
A Headstart Over Libra?
The new project seems to be gaining steam as Facebook’s Libra continues to court both political and regulatory opposition.
Mr Kimble expressed optimism that the project would avoid Libra’s current fate. He held that his alliance had been collaborating with governments and central banks on the project.
“We have met with governments around the globe as well as central banks. We are continually engaging with governments in the many countries which we hope to serve.”
Pushing A Similar Agenda
On his part, Diogo Monica Anchorage’s president acknowledged the uniqueness in tactics and features inherent in both Celo and Libra. He, however, posits that in seeking to bank the unbanked they shared similar goals.
Moreover, he stressed his Company’s commitment to the realisation of an open financial system. To that end, he averred that it behoved them to support the Libra and Celo Dollar projects.
The Libra Association has also parted with a number of its key partners including Visa, Mastercard, and Vodafone. However, in Shopify and Tagomi, it has recently gained new members.
Is Celo Dollar an Odds-on Favorite For Success?
Celo’s membership serves a total of 400 million people. It’s exploring opportunities in remittances and payments. Additionally, it’s seeking to make in-roads in and streamlining the delivery of humanitarian services.
To date, the organization has raised over $36 million. Most of these funds have come in through token sales, including $15 million from Libra associate Andreessen Horowitz. Other contributing members are BisonTrails and MercyCorps.
Compliance with U.S regulations raises the odds of the project’s success. Furthermore, since launching in 2017, it has had a clear objective: taking financial services to the world’s unbanked.