By
Chimamanda U. Martha
April 12th, 2024
Zuckerberg explained that with Libra it could be easier for individuals to transfer money or pay for goods across national borders, which would be an advantage for both businesses and Facebook.
During an annual shareholder meeting hold on Wednesday, Facebook CEO Mark Zuckerberg said that Libra can boost the company’s ads business. Answering the question of how Facebook Inc (NASDAQ: FB) plans to profit from integrating Libra into its services, he explained that with Libra, the networking giant can increase prices for ads.
Now, there is no set price for Facebook advertisements. Instead, businesses submit their ads through an auction system, bidding based on the results they target to get.
Zuckerberg said:
“When they run an ad, somebody clicks on that ad and is now going to be more likely to buy something because they actually have a form of payment that works that’s on file; then it basically becomes worth it more for the businesses to bid higher in the ads. And what we see are higher prices for the ads overall.”
With Libra, it could really be easier for individuals to transfer money or pay for goods across national borders. It would be an advantage for both businesses and Facebook.
Zuckerberg went on, saying:
“I think there are a lot of opportunities with Libra to make the process of commerce and payments helpful — a lot easier. And I think that that’s going to be great for people around the world. I think it will be helpful for the economy overall. And we will be able to participate in some amount to that value creation ourselves through higher prices in ads if businesses are succeeding using these tools.”
Latest Libra News from Facebook
Initially, Libra was set to launch in the first half of 2020. But numerous legal issues and regulatory scrutiny have disturbed Facebook’s plans and made it to change the vision. Instead of pursuing its native crypto plans, Facebook decided to offer fiat-tied stable coins through its digital wallet. In other words, instead of having a single Libra coin pegged to different national currencies, the digital wallet will have multiple stable coins tied to individual currencies. One Libra coin could be pegged to the Euro, another to the US dollar, and so on.
Recently, Facebook rebranded its Calibra digital wallet to Novi which will be a part of the Libra payment system and launch once the Libra network goes live. This rebranding was an effort to avoid confusion with Libra cryptocurrency.
The Libra Association has also added several new members, including Singapore investment giant Temasek and online payment processor Checkout.com. Currently, it consists of 27 members.