If you’re one of the 2.4 billion Facebook users around the world, it’s a terrifying but truthful fact that there isn’t much the social media platform can’t find out about you.
Facebook knows your name, who your friends are, probably about the holiday that you’re counting down to, and maybe even what you had for dinner a few nights ago. This is the side effect of sharing the details of life on social media.
Now, Facebook is on its way to your personal shopping habits.
Facebook has always some insight into how and where we spend our hard-earned cash. After all, it knows what kinds of products catch your eye from the adverts you respond to, and the things you type into your search engine.
The new Libra currency launch though, means Facebook is about to get to know you a whole lot better.
What is Facebook’s Libra Currency?
In a nutshell, it’s another type of cryptocurrency, or digital money. It is being dubbed as an evolution of PayPal in many ways, and is expected to kick into action around 2020.
Libra Coins are purchased with real money – the old school way – and then stored in something like Calibra, which is Facebook’s version of a digital wallet. These coins can then be exchanged on the internet for applicable goods and services.
If all goes to plan, the currency is expected to last hundreds of years thanks to its robust and comprehensive infrastructure.
What is the point of Libra cryptocurrency?
Its main objective is to eliminate expensive credit card transaction fees for small retailers selling and buying via Facebook, as well as boosting online security when making transactions.
Though not exclusive to them, Libra is largely targeted at Facebook users in developing countries who would find it a much easier way to send and receive money for goods or services.
Facebook says that it doesn’t intend to profit from Libra in the short term. They do, however, admit to seeing the long-term potential of increased advertising from small businesses using the Libra feature.
Benefits of Libra cryptocurrency for small businesses:
Money for goods and services can be sent around the world with no transaction fee
An appealing alternative to conventional card payments
A more cost-effective way of dealing with micro-transactions
No payment provider fees (transaction authorisation, PCI compliance etc)
Simple, efficient and flexible
Plus, Libra already has the backing of some of the world’s most reputable finance bigwigs, including Visa and Mastercard.
That said, 40% of UK small businesses still don’t accept card payments, which could present a resistance to change along the way.
Are you a small business owner feeling a little apprehensive ahead of the launch of Libra? Or are you looking forward to seeing what benefits it brings? We’d love to hear your thoughts on the hot topic.
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About The Author
A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.