In a notable development, Meta, the parent company of Facebook and Instagram, has begun offering payouts in stablecoins to its creators, marking a significant shift towards cryptocurrency-based payments after its previous Libra project was shelved. Currently, this feature is limited to a select group of creators in Colombia and the Philippines, as per the information available on Meta's website. These eligible creators can link their digital wallets to receive payments in USDC, a stablecoin by Circle, via the Solana or Polygon blockchain networks. This service is facilitated by Stripe, a payments company, which will also provide users with cryptocurrency-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 news follows Meta's earlier 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 transactions, Meta, with its vast user base of over 3 billion across its social media platforms globally, is positioning itself among the largest tech companies to utilize blockchain technology for moving 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 economical method of payment. For instance, Visa has reported that its stablecoin settlement network has reached an annualized transaction volume of $7 billion, marking a 50% growth in just one quarter.
This move signifies Meta's re-entry into the stablecoin arena after its previous attempt to launch the Libra token, later renamed Diem, which was eventually discontinued due to regulatory scrutiny in 2022.