After months of seeing companies distance themselves from Facebook and their subsidiary, Calibra, it would appear as though the endeavour is attracting new backers.
Today, the industry was greeted with news that e-commerce giant, Shopify, has decided to join the Libra Association; A move which may mark the return of other high-profile companies into the fray.
On the surface, it would appear as though the companies are a good fit. As a global e-commerce platform, Shopify stands to benefit greatly in the event that Libra becomes a globally accepted stablecoin. With this being the case, it only makes sense that supporting its launch is a given positive.
Upon announcing their decision to join the ranks of Libra, Shopify took the time to explain their decision to the world. The following is a brief excerpt from their statement, touching on their goals.
“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. That’s why we decided to become a member of the Libra Association. This is one step, but not the only step we’ll be taking to be a part of the solution to this global problem.”
Some may have, and continue to, doubt the project as a whole. Due to potential regulatory backlash, this doubt clearly found its way to several of the project's founding members. Only time will tell if these companies made the appropriate decision in abandoning the project.
While the original founding members of Calibra totalled roughly 25, the following were the first high-profile participants to flee the coop:
PayPal, MasterCard, Visa, Stripe, and EBay.
Much of the aforementioned ‘loss of faith’ stems around the fact that no one quite knows how Libra will be classified.
For example, the project makes use of two tokens. The ‘Libra Investment Token’, which is obviously a security token, and ‘Libra’, which is being marketed as a stablecoin.
Due to the intimate nature of the two tokens, with the potential for Libra to influence the profitability of the Libra Investment Token, there are those in positions of power that believe both should be classified as securities.
While no decision has been made, to date, on official classifications, it is this on-going uncertainty that continues to potentially dissuade some from taking part in the endeavour.
Founded in 2006, Shopify maintains operations out of Canada’s capital, Ottawa. Since their launch, Shopify has established themselves as a giant within their industry of online commerce. They now find themselves employing thousands, with expansion seeing them serve 175 countries across the globe.
CEO, Tobias Lütke, currently oversees company operations.
Founded in 2019, Calibra is a subsidiary of social media giant, Facebook. Above all, the company was structured with the goal of supporting the anticipated Libra stablecoin, primarily by acting as a digital wallet.
CEO, David A. Marcus, currently oversees company operations.
A Timeline of Events
The importance and magnitude of the Libra project is through the roof. The entire world is watching to see what becomes of Facebook's plans. Naturally, we have been watching, as well, and have been documenting the chain of events surrounding the project from day 1. The following articles provide a brief synopsis of the timeline, since Libra's initial announcement. Make sure to peruse through them to gain a better understanding of how the project finds itself where it is today.