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David Marcus is the executive of Libra and Calibra's Facebook channel channels projects.
The Senate Committee on Banks and Banks released Monday the testimony of David Marcus, head of Facebook's cryptocurrency projects, before his testimony on Tuesday.
In his prepared remarks, Marcus perfectly describes the business model that underpins the future Libra digital currency and its digital wallet Calibra of the social network.
"We do not expect Calibra to earn any money in the first place." The account and financial information of its customers will not be shared with Facebook, Inc., and therefore can not be used for targeting ads. The first goal is adoption, enabling people around the world – especially the unbanked and underfunded – to take part in the financial ecosystem.
"But we expect the Calibra portfolio to immediately benefit Facebook as a whole, as it will enable many of the more than 90 million small and medium-sized businesses that use the Facebook platform to deal more directly with the many Facebook users. consumers and businesses to use more Facebook.This increased usage will likely generate better advertising revenue for Facebook. "
The key word in Marcus' remarks is "utility".
Facebook CEO Mark Zuckerberg is obsessed with the idea of utility, told CNBC a former Facebook employee who had left the company in 2017. If Facebook is essential, you simply can not afford it. send of your life as it provides a fundamental value.
For many people, Facebook already plays this role. The company's social networks serve people with their address book, event calendar, messenger services and photo albums. Facebook will become even more useful in the lives of its users if they start using it as a digital bank.
The rest of Marcus' statements follow Facebook's classic game plan. By focusing first on user adoption, the company favors growth on the assumption that advertising revenue will follow soon.
Marcus said that Facebook would not use people's Calibra data to target them, which would surely relieve users who care about privacy. But the company does not really need this data to sell more ads. If people exchange their money for Libra, the company expects them and companies to increase their use of Facebook. This will cause more companies to pay to promote their products and services within the Facebook ecosystem.
Facebook may be a pivot of privacy, but the family's support of the company will continue to advertise.
Marcus is scheduled to testify Tuesday before the Senate Banking Committee and Wednesday before the House Financial Services Committee.
WATCH: CNBC Full Interview with David Marcus, Facebook Digital Portfolio Project Manager
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