Cell Foundation creates an alternative to the Libra project

A number of cryptocurrency companies have become members of the” Alliance for prosperity”, which will develop financial applications on the Celo blockchain.

According to the Celo Foundation, 50 members of the new organization, including Andreessen Horowitz, Coinbase Ventures and Polychain Capital, will work together to expand the availability of financial services and explore business processes related to payments, humanitarian aid and microcredit. Andreessen Horowitz General partner Katie Haun noted:

“We expect that this cooperation will open up the financial potential on the Internet, starting with faster and more affordable transactions and ending with micro-loans, as well as transparent and effective distribution of humanitarian aid. We have only touched on the scenarios that can be imagined now, but there are actually much more of them.”

The Celo Foundation is behind the creation and issue of the Celo Dollar. Members of the Alliance will develop applications based on this stablecoin. The group also includes the developer of the cryptocurrency wallet Abra, the custodial service Anchorage, the developer of the blockchain Protocol Bison Trails, Blockchain.com, as well as the non-profit organizations Grameen Foundation and Mercy Corps.

“Ultimately, we intend to make Celo Dollar as accessible as possible to the entire world, so that each of the 5.6 billion smartphones can access open Finance,” the Celo Foundation said.

The announced plans of the Alliance are in many ways similar to the ideas of the Libra Association, which also intends to make financial services more accessible. To date, 130 teams have expressed interest in the Celo platform. Recall that 1,500 organizations expressed a desire to join the development of Libra four months after the announcement of this product.

Last year, Celo managed to attract $30 million in investment with the participation of Andreessen Horowitz and Polychain. At the same time, Andreessen Horowitz, Anchorage, Bison Trails and Coinbase are also members of the Libra Association. Because of this, there may be a conflict of interest, since it is about choosing a stablecoin that they will support and integrate into their products.

At the moment, the Celo platform is being tested, and its official launch is scheduled for April. Celo does not intend to compete with the us dollar, and its list of reserves will include other cryptocurrencies, not Fiat money. This approach may appeal to regulators who opposed Facebook’s financial initiative.