In a notable development, 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 payments following the discontinuation of its Libra project. This new feature is initially being offered to a limited number of creators in Colombia and the Philippines, as per information available 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 networks. Payments firm Stripe is providing support for this service, including crypto-related reporting for users, who may receive tax documents from both Meta and Stripe related to their earnings and transactions involving digital assets.
A spokesperson for Stripe confirmed the company's involvement in this initiative. Jay Shah, head of Link at Stripe, noted that businesses can now use Link to send stablecoin payouts directly to customers, and that Stripe is already collaborating with Meta to enable creators in countries such as the Philippines and Colombia to receive stablecoins in their Link wallets. This move follows Meta's earlier efforts to engage third-party vendors for the administration of stablecoin payments on its platforms, with Stripe being a leading contender for this integration. By adopting stablecoins for real-world payments, Meta, with its vast user base of over 3 billion across its social media platforms globally, is among the largest tech companies to utilize blockchain technology for transferring money worldwide without relying on traditional banking systems.
Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly being recognized as a faster and more cost-effective method of payment. For instance, Visa reported that its stablecoin settlement network achieved an annualized transaction volume of $7 billion, representing a 50% growth over a quarter. This initiative marks Meta's return to stablecoins after its earlier attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.