After getting ditched by major firms such as Stripe, Visa, eBay and other high profile entities, the Libra Association has a reason to smile today. The Canada-based e-commerce platform, Shopify announced on Feb. 21 that it is joining the Libra association.
Shopify joins roughly a month after telecommunications giants Vodafone left the Libra Association to focus on its own digital payments system. The e-commerce giants after contributing at least $10 million to join the association, will be granted access to operate a node that processes Libra stablecoin transactions.
Moreover, if the Libra Association manages to beat the global regulatory hindering its launch; Shopify will have the power to process transactions with no credit card charges. The Libra stablecoin is created to move between wallets at zero or nearly zero transaction fees. This is likely to save the e-commerce giants and its over 1 million merchants operating online stores money.
Indeed, Shopify cited that reducing fees for its merchants and bringing e-commerce to the developing nations as the reason why it joined the Libra Association. According to Shopify’s CEO through a tweet:
“Shopify spends a lot of time thinking about how to make commerce better in parts of the world where money and banking could be far better. That’s why we decided to become a member of the Libra Association.”
In addition, the move by Shopify to join Facebook’s Libra project is quite significant; one is given the size and reputation of the e-commerce firm. Shopify does not offer direct cryptocurrency payments however, it allows its merchants to receive cryptocurrency payments through alternative methods such as Coinbase Commerce, BitPay, GoCoin and CoinPayments Beta, as per its website.
Shopify is Entitled to One Vote in the Libra Association Council
Now that Shopify is a member of the Libra Association; the firm is entitled to one vote on the Libra Association council; dividends earned from the Libra reserves in proportion to its investment and it will also operate a validation node. In conclusion, Facebook has been working on other digital payments methods; such as Facebook Pay and Whatsapp Pay as it works to convince regulators that Libra is safe.