Facebook’s Libra project, which has taken a number of changes and moves in the recent times after regulators shut down the original idea, appear to be pushing forward towards a new launch possibly next year.
Libra may not be the same project it was outlined in the original whitepaper sent last year this time, but it is still an interesting advancement in the adoption of cryptocurrencies. More so, the head of Facebook, Mark Zuckerberg has outlined further where he sees its impact.
During a shareholder meeting, the Social Media giant’s CEO explained how Libra will help the parent company make additional money, mostly through ad revenue. But, at the same time, there is an interesting viewpoint being taken from China as the country has published a book addressing the challenges Libra poses.
How to make money off Libra
In the shareholder meeting Zuckerberg responded to a question about how Facebook will benefit and make money off of Libra. He responded by describing Libra’s potential impact on e-commerce on Facebook, and its potential impact on advertising revenue.
Zuckerberg has said Facebook does not charge a set price for ads and instead works with a bidding system, where every business trying to advertise will bid to compete for ad space. The system, Zuckerberg said, allows them to get the “lowest possible price.”
Then, by combining ads with an effective payment tool such as Libra can benefit businesses further as it could make commerce more efficient.
“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,” he said.
China threatened by Libra
When Libra made the headlines, China soon followed with advancements about its own digital currency as the expectations were that the country was threatened by Libra. Now, In a book published by the Central Party School of China to educate government officials on digital currency and propose policy measures to deal with emerging challenges like the Libra project, warnings have been made.
“China originally relied on mobile payment to get ahead, but now Libra has the potential to change the game again,” A part of the book reads