May 27

What Is Celo and Could It Succeed Where Libra Won’t?

By Jamie Crawley

Celo promises to be a stablecoin to rival Libra. While unlikely to be regarded with the same distrust as Facebook’s much-maligned digital currency, Celo will still have its share of challenges relating to regulation and scale.

The announcement that Facebook was leading the development of a digital currency in June 2019 was met with fierce pushback from politicians and regulators concerned about a company of the social media giant’s size and influence taking such a stake in the mainstream global financial system.

The backlash saw the exodus of several of Libra’s partners, including PayPal, Stripe, Mastercard, Visa and eBay.

Mark Zuckerberg appeared in front of Congress in October to address concerns surrounding Libra, where he stated that something like Libra is necessary in the interest of creating a digital architecture to support innovation in the financial industry, even if Facebook “is not the ideal messenger right now”.

Photo courtesy of xresch.

Source: Finextra (link opens in a new window)

Finance, Technology