The Celo Foundation has unveiled a new cryptocurrency network designed to assist people of lower standing.
Celo Seeks to Introduce “Crypto for Everyone”
In other words, people who are poorer or who don’t have direct access to traditional financial programs are likely to benefit the most from the organization’s latest development. Known as the Alliance for Prosperity, the network is supported by more than 50 firms around the world including Mercy Corps and is seeking to create financial tools for as many 5.6 billion smartphone users, many of which are living below the poverty line.
The idea is to enable remittance payments for people working abroad to send money home to their families without the delays they’d likely encounter through traditional banks. Many people throughout the globe are still largely unbanked, meaning they do not possess checking or savings accounts, and cannot utilize the help of financial institutions to ensure their survival.
Chuck Kimble – head of the network – explained in an interview:
The announcement is really exciting for us. We’re thrilled [by] the caliber of organizations that have decided to join us in this mission, and we hope that it is a call to the world for others to join the alliance and create even more prosperity throughout the globe.
Celo is a nonprofit organization that boasts its own blockchain. The company designed what’s known as the Celo Dollar as a means of fostering “social impact and financial inclusion.” The asset has been compared largely to Facebook’s new Libra coin in that it is an alleged stable currency and is designed to assist those who have been turned away or cast aside by standard banks.
Kimble explains that the fees associated with sending Celo Dollars to other individuals are very small. He mentions:
I think the similarity with Libra is that we share a similar mission. We both want to help create prosperity, but I think there are many differences. Ours is decentralized. It’s a completely decentralized collective of mission-aligned organizations. There’s no central governing body to determine how Celo will evolve, and people will be able to vote on how Celo evolves.
This is the opposite of Libra, which is governed and voted on by members of the Libra Association rather than the general public.
Aside from providing easier and more affordable remittance payments, the network is looking to utilize its power and the Celo Dollar to provide humanitarian aid to peoples or countries in need. The organization is also looking to enable financial loans based on the Celo Dollar for those who need cash quickly.
There’s More Than Remittance Payments At Stake
We look for new technologies to increase transparency to reduce costs and to accelerate delivery to the recipients. Celo mobile carriers can start offering remittances for a much lower cost than many alternatives in the market today.