About a year ago, I outlined the pros and cons of cryptocurrency and the benefits for small business. Cryptocurrency is on the move again and in a sizeable way. The social media giant, Facebook, throws its weight behind blockchain and crypto.
With the moniker, Libra, Facebook, and its partners aim to stabilize and spread cryptocurrency use. Calibra, the Libra wallet, will be incorporated into WhatsApp, Messenger, and be a standalone app. Partners include Visa, Mastercard, Uber, and Paypal.
All the partners are part of the Libra Association. The Association will operate independently from them. Want to join? You’ll need at least 10 million.
The reward for the considerable investment? A secure, stable cryptocurrency backed by real assets. The payback for the partners is the interest earned from the stored assets.
The upside for a small business selling on Facebook? Access to customers in the farthest reaches of the world without banking systems — a straightforward way for customers to pay for their purchases on the platform with a stable cryptocurrency.
It’s not likely to affect B2B transactions soon. Not due for full release until 2020, more disruptions remain unknown. Designed as open-source, developers are welcome and test driving the prototype already.
Central banks around the world jumped into the fray with regulatory warnings and hand wringing. Partners such as Visa and Paypal and their familiarity with regulations will help clear many financial regulation hurdles. With over two billion users, Facebook may lead the way into everyday payment via cryptocurrency.
Author: Kris Keppeler, a writer who finds technology fascinating and loves humor. She writes for Crossing Genres on Medium.com and Does This Happen to You? on Channillo. Award-winning podcast producer who enjoys telling stories. Follow her @KrisKKAria on Twitter or on LinkedIn.
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