Meta, the parent company of Facebook and Instagram, has initiated a program to pay certain creators in stablecoins, marking a resurgence of crypto-based transactions after discontinuing its Libra project. Initially, this feature is available to a limited number of creators in Colombia and the Philippines, as per a statement on Meta's website.
Eligible creators can link their cryptocurrency wallets to receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain. This service is facilitated by Stripe, a digital payments firm, which will also handle crypto-related reporting and provide tax documents to creators for their earnings and digital asset transactions. A spokesperson from Stripe confirmed the company's involvement in this initiative.
The head of Link at Stripe, Jay Shah, stated that 'businesses can now send stablecoin payouts directly to customers using Link,' referencing the company's customer checkout service. 'We are already collaborating with Meta to enable their creators to receive stablecoins in their Link wallets in countries such as the Philippines and Colombia.' This development follows Meta's search for third-party vendors to manage stablecoin payments on its platforms, with Stripe being a leading contender.
By doing so, Meta, with over 3 billion users worldwide, becomes one of the largest technology companies to experiment with stablecoins for real-world transactions, utilizing blockchain technology to transfer money globally without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly seen as a faster and more affordable method of payment. For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, representing a 50% growth in a single quarter. This move marks Meta's re-entry into the stablecoin market after its previous attempt to introduce the Libra token, later renamed Diem, which was discontinued in 2022 due to regulatory scrutiny.