A couple of days after Calibra wallet rebranded to Novi, the founder of Facebook Mark Zuckerberg talks about the benefits that Libra will offer to the world – specifically on the revenues it can bolster from advertising.
Currently, ads make over 85% of the tech giant’s revenues as per new estimates, while the payments and other sub-enterprises make up the remaining. According to Mark Zuckerberg, Libra can be used on online marketplaces and global commerce as an effective tool for businesses. This could cause an increase in advertising rates and ultimately, trigger the Facebook stock to go up.
Unlike many other advertiser-reliant businesses, Mark Zuckerberg talks about Libra and how the Facebook ads undergo a “bidding” process by prospective buyers, based on the results that they are looking to achieve. The Libra news now show that a dynamic pricing like this, calculated on various factors (location, demographics, interests, etc.) can help create highly-specific and targeted ads that Facebook can charge high prices for.
For those of you who don’t know, Libra is a stablecoin pegged to widely-used fiat currencies such as the US dollar, Euro, and British Pound. According to the plans that were talked in the annual shareholder meeting (obtained in a transcript by Reuters), Facebook has a lot of plans about the stablecoin.
“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 (…) Millions of businesses around the world can participate, and the business can be very efficient,” Zuckerberg noted.
Mark Zuckerberg talks about Libra all the time, and in the recent meeting he said that the stablecoin could prove to be “great for people around the world,” in addition to helping the overall economy.
While Libra is a global payment method and e-commerce facilitator, Zuckerberg thinks that a large audience can be tapped into. This includes the far-flung areas too, which don’t have access to financial services as well as areas that incur high fees in moving money across borders.
We can’t wait to start rolling out the Novi wallet as soon as Libra mainnet goes live. In the meantime, here’s a little video (play with sound — I love that tune!) 3/3 pic.twitter.com/Fbrxhxpg5d
— David Marcus (@davidmarcus) May 26, 2020
The remaining issues to be cleared are related to the regulatory troubles that the social giant has with Libra, the crypto regulation news show. There are still some regulatory decisions to be cleared out so that Facebook can open Libra to the world.
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