Libra, a new cryptocurrency Facebook has been quietly working on for over a year, was just released to the world on Tuesday. The new coin will be launching next year. With over 27 massive partners and a similar structure to Bitcoin, this might be the next global currency to invest in.
From the crypto-news site The Block, a leaked list shows some notable partners for the new currency. Some big names include Visa, Mastercard, Lyft, PayPal, Uber, and Spotify. Each of these powerhouse companies will be investing $10 million in the new digital coin.
What is Libra?
From the Libra homepage:
- Libra’s mission is to be a simple global currency and financial infrastructure that empowers billions of people.
- Moving money around the world should be as easy and cheap as sending a text message. No matter where you live, what you do, or how much you earn.
- Libra believes that many more people should have access to financial services and to cheap capital.
- The independent Libra Association will be governing the evolving ecosystem.
- Payment partnerships: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
- Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc.
So, Why Is Spotify Getting Involved?
In a blog post shared earlier today, Spotify explains their involvement with the new cryptocurrency. Alex Norström, Spotify’s Chief Premium Business Officer, said:
“One challenge for Spotify and its users around the world has been the lack of easily accessible payment systems – especially for those in financially underserved markets. This creates an enormous barrier to the bonds we work to foster between creators and their fans. In joining the Libra Association, there is an opportunity to better reach Spotify’s total addressable market, eliminate friction and enable payments in mass scale.”
In light of over 2.5 billion customers on Facebook Messenger and WhatsApp, Facebook will be offering Libra to the majority of its users. The platform is also planning to utilize its partnerships with Uber and Spotify. This could involve using Libra as a payment method for rides and online subscription services. Libra may also be serving as a possible substitute for PayPal and Venmo in the near future.
Last year we saw the Elements Music Festival accept payments for tickets via Bitcoin, and they’re not the only ones. Could there be a future for Libra in the music world?