In a significant move, Meta, the parent company of Facebook and Instagram, has initiated a program to pay certain creators in stablecoins, marking a notable resurgence in the company's exploration of cryptocurrency-powered transactions. This development comes after Meta had previously put its Libra project on hold. Currently, a limited number of creators in Colombia and the Philippines have access to this feature, which allows them to link their crypto wallets and receive payouts in USDC, a stablecoin issued by Circle, via the Solana or Polygon blockchain networks.
Stripe, a prominent online payment processing system, is providing support for this initiative by handling 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 for Stripe has confirmed the company's involvement in this project.
The head of Link at Stripe, Jay Shah, stated that 'businesses can now send stablecoin payouts directly to customers using Link,' referring to the company's customer checkout service. He further added that they are already collaborating with Meta to enable creators in countries such as the Philippines and Colombia to receive stablecoins in their Link wallets.
This news follows Meta's earlier efforts to integrate stablecoin payments on its platforms, with Stripe being one of the leading contenders for this integration. By embracing stablecoins for real-world transactions, Meta joins the ranks of other major tech firms that are 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 being recognized 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 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 shut down in 2022 due to regulatory scrutiny.