On February 21, 2020, Canada-based ecommerce giant Shopify signed on as an associate of the Libra Association after a number of corporations dropped out in response to disapproval by U.S regulators.
Shopify explained it would work with other members of the Libra association to jointly build a payment network that makes money easier to access for consumers globally.
The Libra Association last year said that over 1,500 entities indicated an interest in joining the Libra project effort since the project was announced on June 18, 2019.
Facebook and about 20 other partners officially joined the Libra digital currency project during a meeting in Geneva in October 2019.
The specified mission of the association is to build a better payment network, broaden access to essential financial services, and lower costs for billions of unbanked people who need it the most.
Shopify Partnership to Give Facebook’s Crypto Project A Positive Momentum
In a series of Tweets, Shopify CEO Tobi Lutke commented that the resolution to join the Libra project when other corporations have opted out was based on the future potential of the digital token.
Almost immediately after its announcement in mid-2019, Libra became a target of regulators across the world. While they were clamping down, Facebook’s crypto project quickly lost steam. Last year, the severe backlash from the U.S congress and world financial watchdogs pushed companies like Uber, MasterCard and Visa to back off.
Although it’s projected to be launched later this year, Facebook has been rather quiet on the subject.
However, Libra might be catching a break. With a powerful partner like Spotify, the project may well gain steam as it approaches launch, as the e-commerce partner will be vital in establishing a more empowering infrastructure via Libra for entrepreneurs around the world.
A Breath of Fresh Air For Libra
Shopify’s entrance comes in a tough period for Libra, as just last month, Vodafone joined the list of big companies quitting the crypto project. The giant telecommunications startup reportedly left Facebook’s cryptocurrency project to work on its mobile payments platform – M-Pesa.
Following all the hurdles in its way, Facebook officials also seemed sceptical about the project, with Facebook CEO Mark Zuckerberg warning investors that regulatory concerns could push back the launch date. Regulators are opposed to the project as they deem the borderless digital currency a threat to national sovereignty.
That said, Shopify joining the Libra Association appears as a step in the right direction.