Meta, the parent company of Facebook and Instagram, has initiated a program to pay certain creators in stablecoins, marking a renewed foray into cryptocurrency-based transactions following the discontinuation of its Libra project. Currently, this feature is limited to a specific group of creators in Colombia and the Philippines, as per information available on Meta's website. Eligible users have the option to link their crypto wallets and receive payments in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. This initiative is facilitated by Stripe, a payments firm that will provide users with crypto-related reporting.
As a result, creators may receive tax documentation from both Meta and Stripe pertaining to their earnings and digital asset transactions. A spokesperson for Stripe has confirmed the company's involvement in this project.
Jay Shah, the head of Link at Stripe, stated that 'businesses can now send stablecoin payouts directly to customers using Link,' referring to the company's customer checkout service. 'We are already partnering 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 earlier efforts to collaborate with third-party vendors to administer stablecoin payments on its platforms, with Stripe being one of the leading contenders for integration. By introducing stablecoin payments, Meta joins the ranks of major tech firms exploring the use of blockchain technology for real-world transactions, bypassing traditional banking systems.
Stablecoins, whose values are pegged to fiat currencies, are increasingly recognized as a faster and more cost-effective method of payment. For instance, Visa has reported that its stablecoin settlement network has reached an annualized transaction volume of $7 billion, representing a 50% growth over the previous quarter. This move marks Meta's re-entry into the stablecoin space after its previous attempt to launch the Libra token, later rebranded as Diem, which was ultimately shut down in 2022 due to regulatory scrutiny.