According to the latest news from Beishu Blockchain, on March 11, many members of the Libra Association announced their support for Celo, another global encrypted digital currency. In other words, they have started supporting a competitor to Libra as their own backup plan.
This type of digital currency is known as the Celo Dollar, known as the Alliance for Prosperity. It has 50 founding members. They include Anchorage, Bison Trails, Coinbase Ventures, the first member company of Libra, as well as Macy's, Andreessen Horowitz (unnamed venture capital in Silicon Valley).
According to foreign media reports, compared with Libra, Celo is easier to get the approval of government regulators, because its purpose is not to replace legal currencies such as the US dollar, and the currency value of the currency is still supported by the US dollar or other cryptocurrencies.
According to Beishu Blockchain, the first payment tool software has appeared on the Celo platform, called "Celo Wallet", and consumers can already download and install it in the Apple or Google App Store.
When asked what the biggest threats to Celo's success were, Bo Jin said that banking infrastructure is improving "faster than we expected," and that mobile applications or long-term evolution technology data are not developing on their current trajectories. He has no Mention developer fatigue, regulatory scrutiny, technical complexity, or slow adoption of blockchain utilities, and indeed, these factors have plagued the development of other great digital currencies.
Last year, Facebook proposed to issue Libra, a global digital currency, which met with collective opposition from financial regulators and central banks around the world.
Libra is called a stablecoin, meaning it will float with a traditional basket of currencies.
Although Libra is linked to a basket of fiat currencies and seems to have solved the problem of large price fluctuations, it still cannot change its nature of not being a currency. One of the core problems is that Libra still has no national credit support and no central adjustment mechanism, so it is doubtful how its currency value can be stabilized. Although Libra is currently actively seeking cooperation with regulatory authorities, such as accepting anti-money laundering supervision and possibly depositing reserve assets in the central bank, in order to solve the problem of Libra reserve security, Libra reserve assets are not directly issued by the state after all. The need to regulate currency fluctuations and maintain credibility cannot be compared with the national standard currency.
According to Facebook's thinking, if all goes well, Libra should have been officially launched in June this year. But Libra is now expected to launch in the fall of 2020, a few months later than originally planned, according to the British media BBC.
In the past six months, the central banks of various countries have criticized Facebook's Libra currency on the one hand, and on the other hand, they are also preparing to issue legal central bank digital currencies. Not long ago, Sweden, a Nordic country, issued the world's first central bank digital currency, called "e-krona".
On March 4, some media said that Facebook will reduce the scale of Libra's issuance. Compared with the ambitions when the white paper was first released, Libra now seems to have suffered a severe blow. In the past half a year or so, the constant pressure of supervision has forced Libra to reconsider the original "global unified currency" plan.
Therefore, Facebook no longer uses Libra as the core of its digital payment strategy, but considers reshaping Libra as a payment network that can use multiple tokens. These tokens could include tokens issued by central banks and backed by dollars, euros or other currencies.
In recent months, the Libra Association has lost several key members, including Visa, MasterCard, eBay, mobile payment company Square, Vodafone and others. By backing Celo, some of Libra's remaining members are effectively "hedging their bets."
What is Celo?
Celo, designed by venture capital firm cLabs in 2017, is an open blockchain platform that can be used to build mobile applications, including cash transfers, person-to-person loans, international remittances and digital wallets. Currently, the open-source Celo platform is still in beta and is expected to be officially launched in April.
The Celo Foundation is the nonprofit behind the Celo blockchain project and a competitor to Facebook's Libra Foundation. Founded in 2017, the foundation has raised $36.4 million to date.
The nonprofit Celo Foundation was founded in 2017 and has raised $36.4 million to date.
The new cryptocurrency aims to provide humanitarian aid, facilitate global cross-border payments, and plans to issue a new currency and provide micro-loans in April.
To celebrate the launch of the Alliance and demonstrate its commitment to financial inclusion to the public, the Alliance for Prosperity will hold #ProsperityGifts around the world, offering a unique opportunity for qualified applicants with ideas that can positively impact their local communities Small bonus. Through these efforts, the Alliance will deepen its commitment to deliver meaningful impact through prosperity.
Celo founder Rene Reinsberg said: "We believe that the only way to solve the world's most intractable problems is to bring together different types of organizations with a common mission to create a future of shared prosperity for people around the world. Blockchain technology is reimagining the future of money, creating tools for inclusive finance. From sending money across borders to donating to humanitarian organizations, we ensure funds go to the right people and not into the pockets of intermediaries."
Celo is an open blockchain platform whose financial instruments can be accessed by anyone with a mobile phone. It can be used to build a strong mobile application ecosystem, providing users with the functions of cash transfer, P2P loan, international remittance, digital assets and wallet. Celo's digital currency, the Celo Dollar stablecoin, provides global users with a stable, secure, favorable and easy-to-operate platform to help them transfer assets and conduct financial activities that were previously impossible.
Differences between Libra and Celo
In addition, regulatory research institutions believe that Facebook’s Libra currency may escape the financial market supervision of various countries, become a money laundering tool for bad guys or other criminal groups, or be used by terrorist organizations in various countries to raise funds.
In the past few years, Facebook has exposed countless scandals of violating personal privacy rights, which has also affected the trust of the outside world in Libra. The outside world doubts that Facebook will not be able to protect consumers' private information in the future, such as how much currency the general public holds and what kind of consumption transactions they have carried out.
Compared to Libra, Celo may avoid some of the "debt" from the negative image of the social networking giant. But the new project is also missing a key part of Libra's appeal: a connection to Facebook's 2 billion monthly active users. The Celo project will also have to compete with established mobile payment companies like PayPal.
At present, any company can apply to join this open network. The Celo Alliance has not set up the financial conditions for founding members of the $10 million membership fee like the Libra Association.
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