New Libra rival set to launch with 50 companies backing

Binance to enable smart contracts through Binance Smart Chain

A new cryptocurrency project is entering the market with over 50 potential partners that also include Libra Association members Andreessen Horowitz and Coinbase.

On March 11, Celo Foundation launched its cryptocurrency project in alliance with 50 members, naming the collaboration as “Alliance for Prosperity”.

Alliance for Prosperity is an open network with its own blockchain and cryptocurrency. It allows users to practice various financial activities on their mobile phones and offers a way for developers to create decentralized mobile applications (dApp), which works on Celo’s ETH-based blockchain and backed by a stablecoin, Celo Dollar.

Celo plans to launch its mainnet in April this year, as it is still under testing.

Alliance for Prosperity to provide humanitarian aid

The alliance is designed to provide humanitarian aid, facilitate payments, and enable microlending services via Celo Dollar, a cryptocurrency designed by Celo.

Gigi Gatti from Grameen Foundation, one of the founding partners of Celo, said:

“The Alliance for Prosperity gives us a fresh chance to build, interoperate, and secure new financial services applications.”

Chuck Kimble, head of Alliance Prosperity, Celo Dollar will be pegged to USD and backed by several other cryptocurrencies. He adds that the crypto will be made available in the United States; however, the alliance’s focus is on Southeast Asia, Latin America, and Africa.

More number of alliance members means that the Celo project is set to flourish and spread swiftly in the crypto world. The combined reach of Celo and its alliance partners is over 400 million people.

Rivalry with Facebook’s Libra

Among the 50 backers of the alliance are several names who are also members of the Libra Association:

  • Andreessen Horowitz
  • Coinbase
  • Anchorage
  • Mercy Corps
  • Bison Trails Co.

The possible reason that Libra supporters have joined the Celo platform is due to similar attributes between both these crypto projects.

Being backed by top crypto firms, Celo is being compared with Facebook’s Libra project. However, Diogo Monica, founder of crypto startup Anchorage, claims that both have unique assets and share the same goal:

Celo and Libra each have unique focuses and approaches, but they share a goal that Anchorage strongly believes in: banking the unbanked.

The biggest differentiator between Celo’s network and other blockchains, however, is that people can receive the Celo Dollar via their phone numbers instead of complex addresses.

The project also aims to build a flexible network of apps for delivering utility using blockchain with ease that does not scare lawmakers as Libra has.

Libra faces regulatory backlash, Celo to provide healthy competition

Libra has been facing a lot of backlash from regulators since its whitepaper was first released in June of last year. With many members leaving, including PayPal, Visa, Stripe, Mastercard, Vodafone, and eBay, Facebook is considering redesigning.

Celo may not have a massive userbase like Facebook, but it has an opportunity to capitalize as Libra remains a question mark for regulators and other organizations.

The project is trying to convince governments with its idea and aims to provide its service across countries.

However, it looks promising with its alliance members standing side by side with the Celo project.

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