- Meta explores stablecoin payments to cut high transaction fees for global content creators, signaling a practical return to crypto.
- Unlike Libra, Meta’s new plan leverages existing stablecoins to streamline international payouts on platforms like Instagram.
- Meta joins Visa and Stripe in embracing stablecoins, reflecting rising institutional interest in blockchain-based payment systems.
Meta is reinventing cryptocurrency by targeting stablecoin-based payments for content creators. In the early stages of discussions, the company is negotiating with crypto infrastructure providers to determine the possibility of using stablecoins to settle small transactions. This step may assist in lowering the transaction charges taken for payments between influencers and content writers who receive cross-border payments.
The plan represents Meta’s first crypto activity since the termination of its Diem project, which was previously referred to as Libra. Ginger Baker, Meta’s Vice President of Product who joined the company in January, is reportedly part of these conversations. Baker has fintech and crypto experience and is among the board members at the Stellar Development Foundation.
Change from Libra to practical applications
The present movement is much more limited than Libra and aims to establish a global stablecoin backed by several fiat currencies. Meta later sold Diem’s properties to Silvergate Bank as an attempt to pause the crypto business.
This new approach, however, centers around streamlining international payouts utilizing already established stablecoin infrastructure. The idea is to provide cheaper and more efficient payments to creators, particularly on platforms like Instagram, without having to establish a whole new digital currency system.
Industry Growth Supports Meta’s Timing
In recent months, Visa, Mastercard, and Stripe have been adding stablecoin-related services to their platforms. For example, Visa collaborated with Bridge, the infrastructure provider of stablecoins, while Stripe introduced new stablecoin-backed accounts.
According to a report from Citi, the global stablecoin market is valued at up to $3.7 trillion under favorable regulation conditions. This trend is indicative of a larger change in financial firms’ and tech companies’ perceptions of blockchain-based payment systems.
Meta operating in ‘Exploratory’ Mode with Providers.
Meta has allegedly spoken to several crypto service providers, but no deals have been concluded. Sources indicate that the company is in “learn mode” implying that the discussions are still at a preliminary level. The company is expected to remain open as to which stablecoin to take on.
Some crypto firms’ executives speculated that Meta’s implementation may start with lower payouts possibly at $100, targeting global creators that are currently paying huge fees with fiat transactions. Meta would not comment on the matter and no timeline for rollout has been issued.
Future Outlook
Meta’s return to stablecoins is a move toward a tangible and low-risk crypto utility. The company seems to be aimed at addressing real-world problems for its creator economy, specifically high-cost international transactions. Despite being still in the early stages of hail, Meta’s action fits the trend of expanding institutional usage of stablecoins.
