Last May 2020, Facebook launched Facebook Shops. It’s a significant step for the platform to join the e-commerce bandwagon. Shortly thereafter, the platform introduced the Novi Digital Wallet. It’s the new payment system to replace Calibra. With the recent announcement of a new pay team, Facebook may launch the “Libra” currency in January 2021.
Facebook’s Libra project started in June 2019. It’s a cryptocurrency protected by blockchain technology. It allows around 1.7 billion users to make low-cost digital payments without the need to access a bank account. According to the Financial Times, Libra will likely be launched in January 2021 but there was a stripped-down of the original plan. It was meant to be backed by multiple currencies. But now, it will be back one-for-one by the US dollars. Thus, the value of Libra depends on the value of US dollars. What makes Libra unique from other cryptocurrencies is that it exists entirely in digital form. The Libra Association, a project co-founded by Facebook, will have direct control over Libra once launched.
Implications for Marketers:
Facebook’s Libra is another step to level up on e-commerce. It will make online money transfer cheaper and easier via Facebook. As such, marketers should prepare themselves to link the cryptocurrency in their payment system. Libra has a big potential to attract new users to the social network.