In the wake of the development of the metaverse, Meta had massively turned to cryptocurrencies. Under the leadership of CEO Mark Zuckerberg, the American group wanted to take advantage of blockchain to build its digital world. Meta notably bet big on NFTs before backtracking. At the same time, the company launched its own token, Libra. Quickly becoming Diem, the project ended up dying, nipped in the bud by regulators. In the process, Meta buried Novi, its digital wallet, which had not gone beyond the experimental stage.
Meta turns to stablecoins
Meta has not, however, abandoned its cryptocurrency ambitions. According to information gleaned by Fortune magazine, the Menlo Park group intends to introduce stablecoins on its platforms, namely Facebook, Instagram, and WhatsApp. As a reminder, a stablecoin is a cryptocurrency with a stable price. It is generally backed by the value of a fiat currency, such as the dollar or the euro.
Integrated into Facebook and its ilk, stablecoins should make it possible to "manage payments" directly within social networks. They will be used in particular to pay content creators who monetize their publications. Above all, the project will make it possible to "pay individuals in different regions" of the world without having to pay bank fees. Transfers will be less expensive and instantaneous. This would be ideal for transfers of amounts under $100.
Reborn crypto ambitions
To carry out the project, Meta turned to several cryptocurrency exchange platforms, whose identities are still unknown. The social media giant is currently in negotiations with exchanges. Meta has also hired crypto expert Ginger Baker as vice president of product to help with its stablecoin projects. Meta is reportedly in "learning mode." In short, the initiative is still in its early stages.
Based on information from Fortune, the project resurrects some of Meta's ambitions in the digital currency space. Instead of relying on its own crypto, Meta will this time rely on existing stablecoins that have been adopted by users. The company has not yet chosen a specific stablecoin, but could rely on partners like Circle or Tether.
The stablecoin boom
Meta's about-face comes as the United States plans to regulate stablecoins. As part of Donald Trump's strategy to ease crypto regulation, the administration is working on regulations that encourage innovation.
As US regulations around stablecoins are loosening, transaction amounts have exploded. Last year, stablecoin transactions reached $35 billion, compared to $15.7 billion for Visa, according to the latest report from the Artemis and Dune experts. The total capitalization of the stablecoin market has grown from $138 billion to $225 billion in one year, an increase of more than 60%. Standard Chartered Bank predicts that the stablecoin market could grow by $2 trillion by the end of 2028. Stablecoin giant Fipto is talking about a "WhatsApp moment," referring to the massive adoption of instant messaging. Besides Meta, many other giants are turning to stablecoins. This is the case for Mastercard, Visa and even Fidelity.
Source: Fortune
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