Facebook CEO and one of the world’s youngest billionaires, Mark Zuckerberg, is stressing the plethora of benefits that Facebook can achieve from Libra, provided that it is used by the Facebook users for their commercial activities.
According to a transcript posted by Thomson Reuters based on an annual shareholder meeting, Mark Zuckerberg stated that the business perspective of Facebook, including Libra, brings significant potential profits from its ads business. This ads business is often deemed as an ‘auction by Facebook’ wherein advertisers bid their best price and the company generates huge profits.
“Because we don’t have to set a price, every business can just bid for themselves what an ad is worth to them in terms of what results they’re trying to get, which means that we can always offer any business the lowest possible price, which is great because that way, it’s very inclusive,” Zuckerberg said. “Millions of businesses around the world can participate, and the business can be very efficient.”
From the perspective of Facebook Pay and Libra, Zuckerberg further emphasized the fact that an effective payment system combined with ads will provide more benefits to the business.
“If we can make commerce be more effective for businesses if when they run an ad, somebody who clicks on that ad is now going to be more likely to buy something because they actually have a form of payment that works that’s on file,” Zuckerberg said. “Then it basically becomes worth it more for the businesses to bid higher in the ads than what we see are higher prices for the ads overall.”
Another area focused by Zuckerberg was that the payment infrastructure has been long overdue for a revolution which he conveyed by restating the previous statements about Libra.
Recognizing the ease of transferring funds through stable coins and considering the concept of Libra, which is a tool that brings different stable coins pegged to fiat currencies to the table, Facebook and other businesses will enjoy numerous benefits from this easier cross-border transfer of funds and payments.
Zuckerberg further added – “I think that, that’s going to be great for people around the world. I think it will be helpful for the economy overall.”