Shopify is the Latest Giant to Join Facebook’s Libra
In a recent press release, e-commerce giant Shopify announced that it has joined the Libra Association, the management arm of Facebook’s cryptocurrency.
According to the e-commerce and online payment services provider, the Shopify Libra coalition is meant to enhance its network of global payments and offer digital alternatives to customers around the world.
How is this Going to Affect Shopify Services?
Shopify did not provide much details on how and when it will start accepting Libra-powered payments on the websites that are powered by its platform.
But the company did mention that its contributions to the Libra payment network will result in a service that supports “merchants and consumers everywhere.”
What Does This Mean for Facebook?
Ever since Facebook’s tumultuous efforts to breach the digital asset space became public in June 2019, the social media platform has been under fire by regulatory authorities.
Much of it has to do with the company’s data mining practices and a general show of irresponsibility towards protecting user privacy as well as handling the overall power of its platform.
The Libra Association received a major blow in October 2019, when high profile partners namely Visa, MasterCard, Stripe and eBay dropped out ahead of a contentious Congressional hearing for the Libra Project.
The hearing and its coverage afterwards did not help in painting the cryptocurrency effort in a good light. But the Shopify Libra coalition is meant to boost the momentum of the new cryptocurrency initiative. Since Shopify is one of the most popular ecommerce platform providers, its acceptance of Libra is set to go a long way.
What’s the Way Forward for Libra?
So far, it is unclear how far the Libra Project has come, but this endorsement by Shopify provides it with some much needed positivity.
With that being said, it is too early to tell if Shopify is going to stick with Libra in the face of further criticism or follow Visa and MasterCard on the way out in the future. Further, we know that the Libra project might become more diluted over time as it faces pushback from regulators across the globe.
Major partners who would have added more clout to the Libra Project dropped out over a variety of concerns. One of these concerns was about the Libra Project and its business model.
How would it earn?
Mastercard’s CEO noted in an interview with the Financial Times “when you don’t understand how money gets made, it gets made in ways you don’t like.” Of course, leaders such as Banga from Mastercard didn’t like the fact that the Libra branded itself as a altruistic project while having proprietary aspects as well.
At the current moment, there’s minimal updates on the Libra Project but here’s a few.
Take a look at the code and technology behind the #OpenSource Libra #Blockchain. Download our CLI and try out the public testnet. https://t.co/c8zJ4NLK8X
— Libra Dev (@LibraDev) February 18, 2020
The project has also had presence at some events where they’ve talked more about what it is all about but still minimal updates on launch.
We want to enable a secure, low-cost digital payment system for everyone that promotes competition. Watch @DDisparte w/ @Mikejcasey from @CoinDesk: https://t.co/NLheIjFbiX #FinancialInclusion
— Libra (@Libra_) February 17, 2020
Let’s see what happens with Libra throughout the year.