In a new series of events, the Canadian e-commerce platform, Shopify has joined the Libra Association which is a network of organizations supporting the proposed stablecoin by Facebook, Libra.
In an official announcement made on 21 February 2020, Shopify confirmed that the firm would collaborate with Libra in order to establish a global payment system within the association.
For its part, the Libra Association has given a nod to the announcement through a post on Facebook where it states that Shopify would be ‘an incredible partner’ for fulfilling widespread economic participation.
Traditional Banking Not Enough for Ecommerce to Thrive
The announcement highlighted that the reason for Shopify’s participation in the Libra Association was to solve the problem of cross-border payments. The company stressed that almost the entire traditional banking system was incompatible with e-commerce.
The firm also said that since it was one of the major e-commerce platforms in the world, it was its duty to set an example by moving a step further from the traditional methods of banking towards a structure which would provide ‘transparent fees and an easy access to capital’ without compromising on security and privacy.
Shopify further added hope for the future by saying that joining the Libra Association was only one of the several steps it would take to provide solutions for global financial issues.
Uneven Paths for Libra
Ever since it came into existence, Facebook’s stablecoin has been a subject of wide debate. While some have hailed it, others have doubted its credibility and have anticipated the problems it could create in the future for world finance.
However, the partnership with Shopify has come as a big relief considering the mass exit of firms which happened only a few months ago, casting Libra’s future into the dark.