In a notable development, Meta, the parent company of Facebook and Instagram, has initiated a stablecoin payout system for its creators, marking a significant return to cryptocurrency-based payments after abandoning its Libra project. This feature is currently limited to a specific group 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 offered by Circle, on the Solana or Polygon blockchain networks. The rollout of this service is supported by Stripe, a prominent payments firm, which will handle crypto-related reporting for users.
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 has confirmed the company's involvement in this initiative. Jay Shah, head of Link at Stripe, stated, 'Businesses can now send stablecoin payouts directly to customers using Link.
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 search for third-party vendors to facilitate stablecoin payments on its platforms, with Stripe being a leading contender for integration. By introducing stablecoin payments, Meta joins the ranks of large tech firms experimenting with blockchain technology for real-world transactions, bypassing traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly being viewed as a faster and more cost-effective payment method. For instance, Visa reported that its stablecoin settlement network reached $7 billion in annualized transaction volume, representing a 50% growth in a quarter.
This initiative marks Meta's re-entry into the stablecoin arena after its previous attempt to introduce the Libra token, later renamed Diem, which was shut down in 2022 due to regulatory scrutiny.