Members Of Libra Association Joined A Rival Stablecoin Project
Members Of Libra Association Joined A Rival Stablecoin Project
March 13, 2020
Members Of Libra Association Joined A Rival Stablecoin Project
Members Of Libra Association Joined A Rival Stablecoin Project
March 13, 2020

Some of the biggest names in Facebook’s embattled Libra Association have joined a rival stablecoin project, which touts its mission as the promotion of financial inclusion using the blockchain.

On March 11, it has been reported that the project, dubbed the “Celo Alliance for Prosperity,”  was unveiled that with key Libra backers Coinbase Ventures, Andreessen Horowitz, Anchorage Mercy Corps and Bison Trails Co. joining the ranks of its 50 founding members. 

However, the combined reach of the Alliance members at launch is ostensibly estimated at 400 million people.

Aside from veterans of the Libra Association, high-profile members of the Celo Alliance include Carbon, GiveDirectly, Grameen Foundation, Maple, and Polychain Capital.

Behind the newly-launched alliance is the non-profit Celo Foundation, founded in 2017, which has been developing an open-source smart contract platform that supports a family of ERC-20 (Ethereum-based) stablecoins.

ALSO READ :  Bitcoin Launderer Alexander Vinnik Extradited To France

Enabling users to interface with the network using a smartphone, the project envisions offering faster and more affordable remittances, providing payments and micro-lending services, and reducing operational complexities in humanitarian aid delivery. 

Likewise, to achieve this, the Foundation has designed a decentralized network structured in three parts. 

This comprises the Celo blockchain, a set of smart contracts dubbed “Celo Core Contracts,” and a decentralized application (DApp) layer, supporting products such as the Celo wallet or offerings from third-party developers.

Moreover, in the Foundation’s words, the code of the Celo blockchain has a “shared ancestry” with Ethereum. It inherits some of its key features, such as the Ethereum Virtual Machine (EVM) runtime environment, smart contract functionality, and a native unit of accounting, Celo Gold (the equivalent of Ether on its predecessor).

From a technical perspective, Celo is a Proof-of-Stake blockchain that implements a Byzantine Fault Tolerant consensus algorithm.

However, the first stablecoin in Celo’s set of ERC-20 assets is the Celo dollar (cUSD), pegged to the U.S. dollar and making use of a “decentralized version of the one-to-one issuance and redemption mechanisms of most fiat-backed stablecoins.”

ALSO READ :  Ethereum 2.0 Beacon Chain Finally Sees The Light Of Day

At a front-end level, this means that:

“Users create new Celo Dollar by sending 1 US Dollar worth of Celo Gold to the reserve, or burn a Celo Dollar by redeeming them for 1 US Dollar worth of Celo Gold.”

As per the report, Libra continues to face regulatory setbacks and uncertainty. 

Image: medium.com

Last month, a memo released on behalf of the European Commission, claimed that the information provided so far by Facebook “remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law.”

In October 2019, PayPal, one of the association’s major backers, pulled out of participation altogether due to worries that its own reputation might suffer.

Thus, reports also surfaced that other association members such as Visa, Mastercard and Stripe were also reevaluating their participation by citing concerns that Facebook may have exaggerated the extent to which regulators had accepted its plans.

Source: medium.com | cointelegraph.com | Image: theblockcrypto.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.