#SocialSpeak: Libra and Callibra! Facebook’s new Digital Currency and Wallet
You can’t really slow down with social media, it’s a world full updates! So, what’s new for this week?
Last week, Facebook announced that, in addition to its upcoming Libra currency, a new subsidiary called Calibra will also be introduced. According to Inc, Calibra will offer a digital wallet product which will allow for transactions with Libra currency. Libra may be spent on various materials and used to send cash to individuals through the Calibra wallet, which will be built into Facebook Messenger and WhatsApp among other third-party wallet apps.
Libra already has several global payment companies backing it as founding members, including Visa and MasterCard. Small business owners, however, may be somewhat in the dark about this new form of currency – they may be aware of certain aspects of cryptocurrency, but unsure of how it may impact their Business Pages.
So, is it necessary that small business owners start planning now for a cryptocurrency future on the site?
Libra matters, especially if you sell through Facebook Business pages
Henry Stanley, CEO of ICO data analytics company ICOAxiom believes that Libra will impact entrepreneurs selling goods via their Facebook Page.
This will ultimately impact more than a social media platform. It will mean adapting across the board for the business.
“Given the size of Facebook, I’m guessing that there will be a large number of users using the coin,” Stanley says. “Business owners should prepare their websites and payment options to include Libra, if they haven’t updated their sites to accept cryptocurrencies already.”
A look at Libra’s benefits
It’s easy to be hesitant around cryptocurrency if you don’t understand how the coins work.
Peter Ryan is the CEO and Founder of Ryan Research. Ryan has led research efforts at CoinDesk, a popular cryptocurrency brand, where he produced data insights, reports, and tools designed to help users understand the digital currency industry.
Facebook Libra, according to Ryan, offers a wide variety of benefits to business owners active on Facebook:
Access to more customers, especially those overseas – Facebook could unlock more cross-border commerce by giving its users international money than dealing with the friction of domestic currencies and foreign exchange.
Smoother checkout processes – Currently, online checkout processes are full of obstacles including inputting long credit card numbers and other details. This causes a drop-off of would-be customers – and abandoned shopping carts.
Stability of value – Libra will be a basket of four currencies, and it will smooth out some of those differentials. This can help preserve or make it easier, to preserve value.
The digital currency will have a digital wallet
The blockchain powered digital wallet, Calibra, will let you send Libra to everyone with access to a smartphone. One of the first goals with the app is to support people with limited access to proper financial services. A big step for Facebook, folks. The app will be fully integrated with Facebook’s massive ecosystem and, according to an official source, Calibra data and Facebook data will be kept separated. You will also need a government-issued ID to create an account.
A double-edged sword for businesses
Will you want to accept Libra for your business? As with everything Facebook, it’s really a double-edged sword. No one wants to give up access to the potentially vast user-base that comes with Facebook, but at the same time, you’ll have to decide if you’re willing to cede another part of your business to a company that hasn’t always shown that it can be trusted.
Facebook appears to be making a move to transforming its focus from a primarily ad-focused platform, into the e-commerce and financial marketplace for the world. Like the big-name brands that have already signed on, the prospect of making it easier to sell products online to the world through Facebook, using a built-in digital currency, is likely to be far too great an opportunity for many small businesses to resist.
Stay tuned to #SocialSpeak for more on the latest social media trends and updates every week!