Libra Project Announced Alliance With Rival CELO Stablecoin

The Libra Project announced a new alliance with a rival stablecoin known as Celo. All of the members that have joined Celo Alliance, include Coinbase Ventures, Bison Trails, Anchorage Mercy Corps and other big shots from the crypto and traditional finances industry. Let’s find out more about this partnership in the following libra coin news.

Back in October, the Libra Association got a major hit when five of the biggest backers – Visa, PayPal, Stripe, Mastercard and eBay departed the platform. They were concerned about the reputation and claimed that The Libra Project exaggerated the openness of regulation of the project. However, Libra claimed that the withdrawal of the companies will not have an impact while the regulatory setbacks could become even worse for Libra.

Celo, on the other hand, is a non-profit organization that aims for financial inclusion for all the people across the world, by developing an open-source financial ecosystem. The goal is to create a CELO Blockchain, stablecoin, and other financial tools and services. The blockchain is proof of stake which is similar to Ethereum in many ways and even takes advantage of the functionalities of a smart contract.

Both Celo and Libra want to create financial inclusion to billions of people with the use of Blockchain technology and combining these two projects, Celo will reach a better position to launch the network since Libra is facing multiple legal hurdles. The two projects have similarities and they want to have a token linked to a basket of different fiat currencies. Both of the projects have to create a camp incubator but let’s see what sets them apart.

One major difference is its reach. Facebook’s Libra was exciting because of the exposure of social media and the relation with 2 billion people that use the service. Celo claims that they will reach 400 million people. The approach is quite different as well. Facebook is a private company that wants to create a centralized platform and its own stabelcoin. Celo is an open-source project that is run by a non-profit organization and it cannot face the same regulatory barriers as Libra did.

The Libra Project announced the alliance and both of the platforms now share the same goals and strategy. However, Celo’s financial ecosystem provides more transparency and is more in line with the crypto ethos.