In a significant move, Meta, the parent company of Facebook and Instagram, has initiated the process of paying certain creators in stablecoins, marking a renewed foray into cryptocurrency-based payments after previously abandoning its Libra project. This new development is currently limited to a select group of creators in Colombia and the Philippines, as per information available on Meta's website. Eligible creators have the option to link their cryptocurrency wallets and receive payouts in USDC, a stablecoin issued by Circle, on the Solana or Polygon blockchain networks.
This initiative is made possible through a partnership with Stripe, a payments firm that 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 transactions involving digital assets.
A spokesperson for Stripe has confirmed the company's role in this venture. Jay Shah, who heads Stripe's Link service, stated, 'Businesses can now make stablecoin payouts directly to customers using Link. We are already working 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 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 joins the ranks of large tech firms leveraging blockchain technology to facilitate global payments without relying on traditional banking systems. Stablecoins, which are cryptocurrencies pegged to the value of fiat currencies, are increasingly seen 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 signifies Meta's return to the stablecoin space after its previous attempt to launch the Libra token, later rebranded as Diem, which was ultimately discontinued in 2022 due to regulatory pressures.