In a notable move, Meta, the parent company of Facebook and Instagram, has initiated stablecoin payments for creators, marking a significant return to cryptocurrency-based transactions after its previous Libra project was shelved. Currently, this feature is being offered to a select group of creators in Colombia and the Philippines, as per information available on Meta's website.
These eligible users can link their crypto wallets to receive payouts in USDC, a stablecoin by Circle, on the Solana or Polygon blockchain networks. This service is facilitated by Stripe, a leading payments firm, which will also provide users with crypto-related reporting.
As a result, creators may receive tax documents from both Meta and Stripe related to their earnings and digital asset transactions. A spokesperson from Stripe confirmed the company's involvement in this initiative. Jay Shah, head of Link at Stripe, stated that businesses can now utilize Link to send stablecoin payouts directly to customers, and they are already collaborating with Meta to enable creators in countries like the Philippines and Colombia to receive stablecoins in their Link wallets.
This development follows Meta's search for third-party vendors to manage stablecoin payments on its platforms, with Stripe being a key contender. By adopting stablecoins for real-world transactions, Meta joins the ranks of large tech firms leveraging blockchain technology to facilitate global payments without relying on traditional banking systems. Stablecoins, with their prices pegged to fiat currencies, are gaining recognition as a faster and more economical payment method. For instance, Visa reported that its stablecoin settlement network reached an annualized transaction volume of $7 billion, marking a 50% growth in just a quarter.
This initiative also signifies Meta's re-entry into the stablecoin arena after the discontinuation of its Libra token project, later renamed Diem, in 2022 due to regulatory scrutiny.