Meta’s Strategic Move into Stablecoins: A New Era for Crypto
Meta, formerly known as Facebook, is discreetly venturing back into the cryptocurrency arena, approximately three years after discontinuing its Diem project. Unlike its previous attempt to create a new digital currency, Meta is now exploring the use of existing stablecoins to enable seamless microtransactions across its platforms, such as Instagram.
As reported by Fortune, Meta is actively engaging in conversations with various cryptocurrency companies, although no definitive plans have been finalized.
The Shift from Past Failures to Innovative Approaches
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Meta’s earlier endeavor, initially launched as Libra and later rebranded as Diem, faced significant regulatory hurdles in the United States, ultimately leading to its downfall in 2022. Following the sale of Diem’s assets, the company temporarily stepped away from the crypto space.
Under the leadership of a new team and a more cautious strategy, Meta is revisiting the cryptocurrency landscape. With Ginger Baker, appointed as Vice President of Product in January, at the helm of these discussions, the company is evaluating the potential of stablecoins for facilitating payments to businesses and content creators. Baker’s extensive background in financial technology and cryptocurrency is expected to play a crucial role in shaping Meta’s future initiatives.
Exploring Stablecoins for Creator Payments
A primary focus of Meta’s current exploration is the use of stablecoins like USDC and USDT to streamline small-scale payments to creators and enterprises worldwide. For example, Instagram influencers frequently receive payments in the range of $100 per transaction, which are subject to substantial fees when processed through traditional banking channels.
Stablecoins offer the advantage of faster and more cost-effective transactions. While Meta has not yet committed to a specific stablecoin, it is considering a multi-token approach depending on the geographical region and application. As per a crypto executive involved in the discussions, Meta is in a phase of “learning” and remains open to various configurations.
The Growing Interest of Financial Giants in Stablecoins
Meta is not alone in its interest in stablecoins. Payment processing giant Stripe now supports stablecoin-based accounts in over 100 countries. Additionally, Visa has partnered with Bridge and invested in BVNK, a startup specializing in stablecoins. Other major players like Fidelity and Ripple are also actively developing stablecoin products.
The stablecoin market has expanded to surpass $230 billion and is projected by some analysts to reach $2 trillion by the end of 2028. Given this momentum, it is understandable that Meta is keen to capitalize on this evolving financial landscape.
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