After eBay, Visa, Stripe and other top-class partners left Facebook Libra supported by Cryptocurrency today made a profit with Shopify. The e-commerce platform becomes a member of the Libra Association, which contributes at least $ 10 million and operates a node that processes transactions for Facebook's stable coin.
If the Libra manages to address the concerns of international regulators who are currently blocking the launch, Shopify will could be given a way to process transactions without paying credit card fees. Libra is designed to switch between wallets with zero or almost zero fees. This could save Shopify and the 1 million retailers who operate online shops on its platform.
Shopify stressed that helping traders cut fees and provide trading opportunities for developing countries as reasons to join the Libra Association , "Much of the global financial infrastructure has not been developed for the scale and needs of Internet commerce," Shopify writes. Here are the most critical parts of his announcement:
Our mission is to improve trade for everyone. To do this, we spend a lot of time thinking about how we can improve trade in parts of the world where money and banking could be much better. , , As a member of the Libra Association, we will work together to build a payment network that eases access to money and supports merchants and consumers everywhere. , , Our mission has always been to support the entrepreneurial journey of the more than one million dealers on our platform. This means advocating transparent fees and easy access to capital, and ensuring the security and privacy of our dealers' customer data. We want to create an infrastructure that empowers more entrepreneurs around the world.
As part of the Libra Association, Shopify becomes a validator node operator, receives a vote on the Libra Association Council, and can earn dividends from interest earned on the Libra Reserve in relation to its investment, which is at least $ 10 million.
The Libra Association had lost much of its e-commerce expertise when a number of members abandoned the project under government control in October. These included traditional payment processors such as Visa and Mastercard, online processors such as Stripe and PayPal, and marketplaces such as eBay. This raised the question of whether the Libra would have the right partners to accept the cryptocurrency in enough places to be useful to people.
To convince regulators that the scale is safe, Facebook has been working on other payment methods, including Facebook Pay and WhatsApp Pay, based on traditional bank transfers or credit cards.
Tobi Lutke, CEO of Shopify, tweeted: “Shopify spends a lot of time thinking about how to improve trading in parts of the world where money and banking could be much better. That is why we decided to become a member of the Libra Association. "
“We are proud to welcome Shopify, Inc. (SHOP) to the Libra Association. As a multinational trading platform with over a million companies in around 175 countries, Shopify, Inc. brings a wealth of knowledge and expertise to the Libra project, ”writes Dante Disparte, Head of Policy and Communications at the Libra Association. "Shopify joins an active group of members of the Libra Association who are committed to the secure, transparent and consumer-friendly implementation of a global payment system that removes financial barriers for billions of people."
A recent hiring has kept the two companies together. Kaz Nejatian, former leading Facebook product manager for his payment platform and billing teams, was named Shopify's Vice President and GM of Money in September.
Running an e-commerce business can be difficult or impossible without a traditional bank account that is difficult to access in some developing countries. The scales could allow these merchants to set up a scales wallet, in which payments are sent instantly and without high credit card fees, and theoretically paid out in local inpatient facilities or ATMs for the local fiat currency.
However, for this to happen, the Libra Association must convince the U.S. government, the EU, and more that it will not help terrorists launder money, violate people's privacy, or weaken the power of nations in the global financial system. French Finance Minister Bruno Le Maire said: “The monetary sovereignty of the countries is at risk of possible privatization of money. , , We cannot approve the development of the scales on European soil. "
The introduction of the scale was originally planned for 2020. We will see.
Here is the full list of Libra Association members:
Calibra, Shopify, PayU, Farfetch, Lyft, Spotify, Uber, Illiad SA, Anchorage, Bison Trails, Coinbase, Xapo, Andreessen Horowitz, Union Square Ventures, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking.
Vodafone, Visa, Mastercard, Stripe, PayPal, Mercado Pago, bookings, eBay.