a16z Predicts Libra Competitors in the Race for a Global Digital Currency
Although a global digital currency has been enticing for regulators, Libra has failed to convince they’ll earn the world’s favor.
Key Takeaways
The announcement of Celo Network earlier this year marked the first true rival for Facebook’s Libra.
a16z believes more competitors could emerge, putting stress on Libra, forcing regulators to take action.
Libra’s failure thus far stems from Facebook’s scandalous past and its initial plan of introducing a new currency.
The winner of this race will likely be the one that operates without threatening the state’s monopoly over the monetary system.
Share this article
Despite Libra’s various obstacles, there is still room for regulatory approval of a global digital currency. Investment fund a16z expects more companies like Libra to emerge, and some of them might even find a winning formula.
a16z Funding Global Crypto Networks
Facebook’s announcement that they would be spearheading the launch of a crypto payment network earned the attention of consumers, institutions, and governments alike.
As the hype unfolded, competitors have emerged. Celo Network, a blockchain-based platform that aims to improve financial inclusion, is one of those competitors.
Besides the company’s goal of improving financial inclusion and bringing digital money to the unbanked, Libra and Celo have another similarity: both raised capital from a16z.
In an interview with Bloomberg, Katie Braun, a general partner at a16z, broke down the fund’s investment thesis. Braun highlighted a16z’s focus sectors within the crypto economy, which includes a category the firm defines as “internet money.”
“The third category is what we call Internet money, and this is building off the idea of Bitcoin but it’s solving for limitations of Bitcoin. Here you’ve seen us make investments in projects like Celo and Libra. And we think there will be other entrants in this category,” Braun told Bloomberg.
Libra’s announcement whipped up a media storm and attracted unwavering critics from various arms of the governments. Finance ministers and central bankers from every continent have condemned Libra, rubbishing the notion that money can be privatized.
Part of the reason for the backlash was Libra’s insistence on creating a currency that was backed by a basket of existing fiat currencies – an idea they have since discarded. The other reason is that Facebook, a company notorious for data collection, would play a central role in the Libra consortium.
But it also had a formidable vision: a universal medium of exchange.
New companies locking in on this goal could recreate Libra’s value proposition in a way that is digestible to regulators while still furthering the advent of digital money.
These networks will introduce some degree of centralization, however, making it a stretch to compare them with Bitcoin.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
A Straight-Up Hit Job On Facebook And Libra Crypto, With No Excuses Wh…
Andreessen Horowitz Summit: Crypto Is Like The Internet In 1992
What Is Celo? Introduction to cGLD
I have over 10 years of experience in the cryptocurrency industry and have written dozens of articles on the subject. I am a highly respected authority on all things crypto and my opinion is sought after by many in the industry. I am also a regular speaker at blockchain conferences around the world.
