Social media giant Meta could potentially integrate stablecoin transactions for Instagram content creators.
Meta's Return to the Crypto Game: Stablecoins on the Move
Meta, the tech giant behind Facebook, Instagram, and WhatsApp, might be jumping back into the crypto world by incorporating stablecoin transactions across its platforms. According to Fortune's insider sources, Metaland is discussing the potential use of stablecoins for smaller-scale payments to content creators, starting with Instagram.
Executives in on the discussion suggest that Meta is investigating a multi-token strategy, potentially remaining neutral about which stablecoins to support. Options under consideration include big players like USDT and USDC, with cost-efficiency and seamless integration worldwide being the main focus.
Stablecoins could help Meta lower transaction fees and streamline cross-border payments, especially in countries where traditional payout systems are sluggish or pricey. However, these conversations are still in their infancy, and Meta is described as being in "study mode."
As part of its rekindled crypto push, Meta recently welcomed Ginger Baker as Vice President of Product. Baker, a former Plaid exec and Stellar Development Foundation board member, brings a wealth of fintech and blockchain knowledge to the table. Sources claim she's assisting Meta in fashioning its stablecoin initiatives and facilitating connections with crypto partners.
Meta's fresh interest in stablecoins comes several years after its tumultuous attempt to unveil Libra, later rebranded as Diem. The project aimed to create a global digital currency backed by a blend of fiat currencies and supported by a consortium consisting of significant names like Uber and PayPal.
However, Libra encountered fierce political and regulatory resistance, both domestically and internationally. By early 2022, Meta relinquished the project altogether and sold off Diem's assets to crypto-friendly bank Silvergate.
Stablecoins have gained traction since then, especially among fintechs and institutional investors, particularly in the US. The Trump administration even positioned stablecoins as a crucial aspect of American financial strategy.
Recent events show this trend persisting. For example, Stripe launched stablecoin-based financial accounts in over 100 countries on May 7, while Visa partnered with Bridge and invested in stablecoin startup BVNK last month. Fidelity is also reportedly working on its own stablecoin.
However, Washington remains divided on how to regulate the burgeoning stablecoin market. On May 8, the U.S. Senate voted against progressing the GENIUS Act, a critical piece of legislation intended to set up a federal regulatory framework for stablecoins. The procedural cloture vote failed 48-49, failing to secure the 60 votes needed for formal debate.
While the bill had previously cleared the Senate Banking Committee with bipartisan backing, it ultimately stalled following last-minute objections from several Senate Democrats due to the lack of robust safeguards against illicit financial activities and potential risks associated with stablecoins issued by foreign entities.
- Meta, with its roots in tech, finance, and social-media platforms, is considering the adoption of stablecoins for transactional purposes, particularly for content creators on Instagram.
- Local sources indicate that Meta is contemplating a multi-token strategy, potentially supporting various stablecoins like USDT and USDC, with cost-efficiency and international integration being key considerations.
- The possible inclusion of stablecoins aims to reduce transaction fees and simplify cross-border transactions, especially in regions with slow and expensive traditional payment systems.
- As part of their renewed crypto endeavors, Meta has appointed Ginger Baker as Vice President of Product, an expert in fintech and blockchain technology.
- Baker is reportedly tasked with directing Meta's stablecoin initiatives and fostering relationships with crypto partners.
- Meta's interest in stablecoins resurfaces after its previous project, Libra (now Diem), faced intense political and regulatory scrutiny and ultimately was discontinued in early 2022.
- Stablecoins have experienced growth in the financial world, particularly among institutions and fintech companies, drawing attention from American policy makers who see stablecoins as a significant aspect of national financial strategy.
- The Senate recently voted against advancing the GENIUS Act, a proposed bill aimed at creating a regulatory framework for stablecoins. The cloture vote resulted in a margin of 48-49, falling short of the 60 votes necessary to proceed with formal debate due to last-minute objections from certain Senate Democrats concerning illicit financial activities and foreign entity risks associated with stablecoins.
