Facebook could get additional benefits from Libra if its users used the new payment system to buy goods from an internal market for the social media giant, said CEO Mark Zuckerberg.
An inclusive system behind Facebook advertisements
Speaking at an annual shareholder meeting this week, Zuckerberg said Facebook's commercial work, including Libra, should be viewed through the lens of its advertising business, says a transcript published by Thomson Reuters.
The company treats the advertising business on its social platform as an auction, which means that the entities involved are free to bid with what they believe is the best price at the moment.
“Since there is no need to set a fixed price, each company can make an offer for itself based on what it believes an ad is worth in terms of the results it is trying to achieve. This means that we can always offer the lowest possible price to any company, and it's fantastic because this system is very inclusive, ”said Zuckerberg.
"Millions of companies around the world can participate and the company's action can be very efficient." But what was limited and being a simple showcase for companies, could soon become a retail tool in which users can buy simply by clicking on the ad, using the new payment system incorporated in the Libra project.
Combine advertisements with the Libra payment system to increase its effectiveness
The combination of advertisements with an effective payment tool for users can bring additional benefits to companies, said Zuckerberg citing Facebook Pay and Libra.
"We can make commerce more effective for businesses by making sure that when they post an ad, those who click on that ad will be more likely to buy something because there is a form of payment that works at the bottom," said Zuckerberg during the reunion.
Basically, it would be convenient for companies to expose themselves with ads that have a higher price than what could be considered the average price for the platform. The Facebook CEO also reiterated previous Libra talks, pointing out that the payment infrastructure "hasn't been updated in a long time."
A tool like Libra, which currently features a number of different stablecoins anchored to legal currencies, could make it easier for individuals to transfer funds or pay for goods across national borders, with additional benefits for businesses and Facebook.
“I think it will be fantastic for people all over the world. I think it will be useful for the economy in general, "said Zuckerberg. And what do you think of Mr. Facebook's words? Will he be able to revolutionize our world once again with his ideas? Write us in the comments!
Latest news: automatic trading platforms like Bitcoin Pro they could update on Libra's arrival, to allow to exchange also the Facebook cryptocurrency!