Search ForexCrunch
  • Mark Zuckerberg recently explained how Libra, Facebook’s upcoming crypto, can help the social network financially. 
  • He said that Libra could make advertising more effective for businesses on its platform and boost revenue for Facebook.
  • The CEO further said that the infrastructure around payments “hasn’t been updated in a very long time.”

In a recent annual shareholder meeting, Mark Zuckerberg, the CEO of Facebook, said that Libra, Facebook’s upcoming digital currency, can help the social media giant benefit financially. He explained that introducing a new cryptocurrency and other tools like online shops can make commerce more compelling for businesses. This, in turn, will result in higher ad prices, which benefits Facebook financially. He said:

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. Millions of businesses around the world can participate, and the business can be very efficient.

Citing Facebook Pay and Libra, Zuckerberg said that combining ads with an efficient payment platform for users can be beneficial for businesses.

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. 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.

The CEO added that the infrastructure around payments “hasn’t been updated in a very long time.” According to him, a platform like Libra can make it easier for users to transfer money or pay for goods across national borders, which would further benefit businesses and Facebook.

I think that, that’s going to be great for people around the world. I think it will be helpful for the economy overall.