The ‘Zuck’ is presenting the banking world, which pulled the floor from underneath his feet last year by retracting their support for his global cryptocurrency Libra, with a nice cold dish of revenge, served up with a twist.
Speaking during an annual shareholder meeting this week, the Facebook CEO explained how the 2 billion users of his social media platform would be able to directly benefit from Libra. In essence, they will in the future be able to buy goods directly from the social media giant’s marketplaces, bypassing all need for a bank. Just like Reddit already does with Ethereum, Facebook will simply allow it’s users a wallet and the crypto coins necessary to spend directly.
“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,” Zuckerberg said. “Millions of businesses around the world can participate, and the business can be very efficient.”
Combining ads with an effective payment tool for users could make Facebook a fully closed system. Whereas banks chose last year to continue their own business model and thus not support Facebook’s desire for them to combine their forces for the development of Libra, Zuckerberg is nog going it alon.
“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,” Zuckerberg said. “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.”