{"id":134929,"date":"2020-05-29T18:35:24","date_gmt":"2020-05-29T17:35:24","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=134929"},"modified":"2026-10-18T12:44:17","modified_gmt":"2026-10-18T11:44:17","slug":"facebooks-mark-zuckerberg-explains-how-digital-currency-libra-could-increase-the-firms-profits","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/facebooks-mark-zuckerberg-explains-how-digital-currency-libra-could-increase-the-firms-profits\/","title":{"rendered":"Facebook’s Mark Zuckerberg explains how digital currency Libra could increase the firm\u2019s profits"},"content":{"rendered":"

Days after rebranding<\/a> the Calibra wallet to Novi, Facebook founder Mark Zuckerberg explained to shareholders how Libra, the firm\u2019s upcoming digital currency, can help bolster revenues from advertising.<\/p>\n

Ads make over 85 percent of the tech giant\u2019s revenues as per estimates, with payments and other sub-enterprises making up the remaining.<\/p>\n

Powering global payments<\/h2>\n

Zuckerberg believes using Libra<\/a> on online marketplaces and global commerce will prove more effective for businesses, causing an increase in advertising rates and, ultimately, Facebook\u2019s stock.<\/p>\n

Unlike other advertiser-reliant businesses, Facebook ads undergo a \u201cbidding\u201d process by prospective buyers, based on the results they are looking to achieve. Such dynamic pricing, calculated on factors like location, interests, and age, help create highly-specific, targeted ads that Facebook can charge high prices for.<\/p>\n

Libra is a digital stablecoin<\/a> pegged to widely-used fiat currencies, such as the U.S. dollar, Euro, and Pound. Users will, as per existing plans, be able to transfer funds or pay for goods across national borders, which would further benefit Facebook.<\/p>\n

In a transcript of the annual shareholder meeting obtained by Reuters<\/i>, Zuckerberg\u2019s was fairly upbeat about Libra\u2019s larger plans:<\/p>\n

\u201cBecause we don\u2019t 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\u2019re trying to get (…) Millions of businesses around the world can participate, and the business can be very efficient.\u201d<\/p><\/blockquote>\n

Great for the economy<\/h2>\n

Zuckerberg said Libra could prove to be \u201cgreat for people around the world,\u201d in addition to helping the overall economy.<\/p>\n

With Libra as a global payment method and e-commerce facilitator, Zuckerberg thinks a larger audience can be tapped into. This includes those in far-flung areas who don\u2019t have access to financial services and those who incur high fees in moving money across borders.<\/p>\n

Libra was rumored to launch in early-2020, but regulatory scrutiny, partner walk-outs, and the ongoing coronavirus pandemic seem to have derailed Facebook\u2019s plans.<\/p>\n

The firm has since bounced back, bringing in ex-HBSC officer Stuart Levey as Libra CEO and adding more partners<\/a>, such as Singapore's sovereign fund Temasek, to the Association.<\/p>\n

However, no definite date on launch exists yet, as Libra\u2019s David Marcus<\/a> outlined in a tweet earlier this week:<\/p>\n

\n

We can\u2019t wait to start rolling out the Novi wallet as soon as Libra mainnet goes live. In the meantime, here\u2019s a little video (play with sound \u2014 I love that tune!) 3\/3 pic.twitter.com\/Fbrxhxpg5d<\/a><\/p>\n

— David Marcus (@davidmarcus) May 26, 2020<\/a><\/p><\/blockquote>\n