In a notable move, Meta, the parent company of Facebook and Instagram, has initiated payouts in stablecoins to its creators, marking a resurgence of crypto-based payment systems after the discontinuation of its Libra project. Currently, this feature is being offered to a limited number of creators in Colombia and the Philippines, as per the information available on Meta's website.
Eligible creators have the option to link their crypto wallets and receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks. This service is facilitated by Stripe, a payments firm that 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 transactions involving digital assets. A spokesperson from Stripe has confirmed the company's involvement in this initiative.
Jay Shah, the head of Link at Stripe, stated, 'Businesses can now make stablecoin payouts directly to their customers using Link, and 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 efforts to partner with third-party vendors for the administration of stablecoin payments on its platforms, with Stripe being a leading contender for this integration. By embracing stablecoins for real-world payments, Meta joins the ranks of large tech firms leveraging blockchain technology to facilitate global money transfers without relying on traditional banking systems. The growing adoption of stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, is driven by their potential to offer faster and cheaper payment solutions.
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 initiative marks Meta's re-entry into the stablecoin space after its earlier attempt to launch the Libra token, which was later rebranded as Diem, but ultimately discontinued due to regulatory scrutiny in 2022.