Libra recorded a win after Shopify made an announcement of its membership. This is a big step forward following the withdrawal of big organizations like eBay, Vodafone, Stripe, and Visa. Also, this move by Shopify contributes nothing less than $10 million and a functional node that handles transaction processes for the Facebook-founded stable coin. Shopify is Libra’s first new member since its creation four months ago.
In the blog post released by Shopify, it relays its commitment to the joint effort of establishing a payment network that works globally. If Libra is able to pacify the uneasiness of international regulators, it could roll out in full force and acquire access to process transactions devoid of credit card charges.
Libra’s model gives it the flexibility to move between wallets with little or no charges. Wide acceptance and integration of Libra could help Shopify and its 1 million users save money. Shopify reiterates that it joined the Libra movement to help reduce merchant fees and drive business opportunities to developing nations. It also states that the needs and scale of e-commerce are too large for the global financial infrastructure to handle.
The most important part of their announcement goes thus:
“Our mission is to make commerce better for everyone and to do that, we spend a lot of our time thinking about how to make commerce better in parts of the world where money and banking could be far better . . . As a member of the Libra Association, we will work collectively to build a payment network that makes money easier to access and supports merchants and consumers everywhere . . . Our mission has always been to support the entrepreneurial journey of more than one million merchants on our platform. That means advocating for transparent fees and easy access to capital and ensuring the security and privacy of our merchants’ customer data. We want to create an infrastructure that empowers more entrepreneurs around the world.”
Libra lost most of the big names in e-commerce after it came under scrutiny in October last year. Marketplaces like eBay, coupled with payment processors like Mastercard and Visa and online processors like PayPal and Stripe, abandoned the project, which questioned the stable coin’s ability to secure the right partnerships.
While Facebook is working hard to convince regulators about Libra’s security, it is also working on other payment plans like WhatsApp Pay and Facebook Pay. The operation of an e-commerce store could be a grueling task if there is no easy-to-use payment system. Libra will enable merchants to create a wallet where payments could be made instantly with little or no charges. The system will also allow the merchants to withdraw their funds at local banks or ATMs in fiat currencies.
The United States government, the European Union, and other regulatory agencies want to ensure that the new currency won’t tamper with users’ privacy, weaken countries’ power in the financial market or be a money-laundering haven for terrorists. Of course, before any of the big plans could come into place, Libra still has a lot of convincing to do.